Click View->Compile and Program Options and click the Assembler tab. Tick the Use MPASM checkbox and make sure that it's pointing to the MPASM install folder. On my system it's c:\program files (x86)\microchip\mpasm suite
Also at the compiler tab, make sure it's pointing at the folder where the PBP executable is located, usually C:\PBP
If you click Help->About it should tell you what version of PBP you have installed, if it does not it haven't found it. I'm using MCS 3.0.0.5 with PBP2.60A
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