Using:
DEFINE OSC 8
OSCCON = %01110000

only as the overhead and compiling:
Executing: "C:\PBP2.60\PBPMPLAB.BAT" -ampasmwin -k# -p18F4550 "both.bas"
Executing: "C:\PBP2.60\PBPW.EXE" -ampasmwin -k# -p18F4550 "both.bas"
PICBASIC PRO(TM) Compiler 2.60A, (c) 1998, 2010 microEngineering Labs, Inc.
All Rights Reserved.
Loaded C:\PBP2.60\both.COF.
BUILD SUCCEEDED: Sun Feb 20 10:22:55 2011

but the LCD is only showing black squares...

K