Oh, you're modifying the 18F2680.inc file in your PBP folder, of an older version of PBP.

_OSC_RCIO_1H is for an external RC oscillator.
Do you have a resistor/capacitor circuit on your OSC pin?

Or did you really want the Internal oscillator?
_OSC_IRCIO67_1H

You should also have _XINST_OFF_4L since PBP cannot use the extended instruction set.

Try them like this ...
Code:
        __CONFIG    _CONFIG1H, _OSC_IRCIO67_1H & _FCMEN_OFF_1H & _IESO_OFF_1H
        __CONFIG    _CONFIG2H, _WDT_ON_2H & _WDTPS_512_2H
        __CONFIG    _CONFIG3H, _PBADEN_OFF_3H & _LPT1OSC_OFF_3H & _MCLRE_ON_3H
        __CONFIG    _CONFIG4L,  _STVREN_ON_4L & _LVP_OFF_4L & _BBSIZ_1024_4L & _XINST_OFF_4L
Don't forget to set the OSCCON register or it will be running at the default 1Mhz.