Thanks for helping me out mackrackit..but I'm still having trouble running the following(I'm really sure if I'm getting the settings correctly).
Code:

Include "modedefs.bas"


asm    
    __CONFIG    _CONFIG1L, _PLLDIV_5_1L & _CPUDIV_OSC1_PLL2_1L & _USBDIV_2_1L
    __CONFIG    _CONFIG2L, _PWRT_ON_2L & _BOR_ON_2L  & _BORV_2_2L  & _VREGEN_ON_2L   
    __CONFIG    _CONFIG2H, _WDT_OFF_2H 
    __CONFIG    _CONFIG3H, _MCLRE_ON_3H & _LPT1OSC_OFF_3H & _PBADEN_OFF_3H & _CCP2MX_ON_3H 
    __CONFIG    _CONFIG4L, _STVREN_ON_4L & _LVP_OFF_4L & _ICPRT_OFF_4L  & _XINST_OFF_4L & _DEBUG_OFF_4L 
    endasm
DEFINE    OSC 48


' Alias PIC pins and registers for SD/MMC card
    SD_WE        VAR    PORTA.4    ' SD card write protect
    SD_WE_TRIS   VAR    TRISA.4    ' SD card write protect direction
    SDI          VAR    PORTC.5    ' SPI data in SD #7
    SDI_TRIS     VAR    TRISC.5    ' SPI data in direction
    SCL          VAR    PORTC.3    ' SPI clock  SD #5
    SCL_TRIS     VAR    TRISC.3    ' SPI clock direction
    SD_CS        VAR    PORTC.2    ' SD card chip select SD #1
    SD_CS_TRIS   VAR    TRISC.2    ' SD card chip select direction
    SD_CD        VAR    PORTC.0    ' SD card detect
    SD_CD_TRIS   VAR    TRISC.0    ' SD card detect direction
    SDO          VAR    PORTC.4    ' SPI data out   SD #2
    SDO_TRIS     VAR    TRISC.4    ' SPI data out direction


' Include the SD/MMC subroutines (found in http://melabs.com/resources/samples/pbp/sdfs3.zip)
cnt var word
cnt = 0
    Include "SDFS.PBP"
  
    SDC_UseHardSPI = TRUE    ' Use hardware SSP port for SPI.
    ADCON1 = 15        ' All I/O pins digital
    '--Added Pic settings
    UCON.3 = 0        'USB module disabled
    UCFG.3 = 1        'USB transceiver disabled
    CCP1CON=0       '  Capture/Compare OFF
    CCP2CON=0       '
 
   
    Pause 100 


    ' FSInit initializes the card and reads all the preliminary information from it
    Gosub FSInit
    Serout2 PORTC.6, 84, ["Init: ", Dec FAT_error, " ", Dec SDC_status, " ", Dec SDC_response, $d, $a]
    If (FAT_error != 0) Then Stop


' This section defines a specific short (8.3) filename
'  Note that spaces are use in empty elements and must be upper case for Windows
    FAT_FileName[0] = "R"
    FAT_FileName[1] = "E"
    FAT_FileName[2] = "C"
    FAT_FileName[3] = "O"
    FAT_FileName[4] = "R"
    FAT_FileName[5] = "D"
    FAT_FileName[6] = "S"
    FAT_FileName[7] = " "
    FAT_FileName[8] = "T"
    FAT_FileName[9] = "X"
    FAT_FileName[10] = "T"


' Set file time to 8:30:10 and date to 1/1/2008
    FAT_seconds = 5
    FAT_minutes = 30
    FAT_hours = 8
    FAT_day = 1
    FAT_month = 1
    FAT_year = 28




' Open a file for write
    FAT_mode = "A"        ' Write mode
    Gosub FSfopen        ' Open file pointed to by Byte array FAT_FileName
    Serout2 PORTC.6, 84, ["Open for write: ", Dec FAT_error, $d, $a]
    If (FAT_error != 0) Then Stop


 cnt = cnt + 5
' Write to file
    FAT_src[0] = $30+cnt
    FAT_src[1] = "M"
    FAT_src[2] = "I"
    FAT_src[3] = "C"
    FAT_src[4] = "R"
    FAT_src[5] = "O"
    FAT_src[6] = "B"
    FAT_src[7] = "O"
    FAT_src[8] = "X"
    FAT_src[9] = 13
    FAT_src[10] = 10
   
    FAT_count = 11
    Gosub FSfwrite
    Serout2 PORTC.6, 84, [ "Write ", Dec FAT_error, $d, $a]
    If (FAT_error != 0) Then Stop




' Close file
    Gosub FSfclose
    Serout2 PORTC.6, 84, [ "Close ", Dec FAT_error, $d, $a]
    End
Kindly check my hardware Connections
SDCARD MCU(4550)
CS ------ RC2
MOSI ------- RC5
SCK ------- RC3
MISO -------RC4
I'm not having a display in the terminal to identify the error produced, What do you think I'm missing?

Thanks in advance,
tacbanon