Thanks Alain and thanks Henrik for the reply. I'm still new to ADC and so far I was able to make my LM35 work based on that code. As I understood in ADCON1 the four least significant bits controls the 8 A to D ports. ADCON1 = 000011 gives me
PORTA.0,1,2,5 = A/D, PortA.3 = +Vref. Which now I think is not really what I need. I need only 3 ADC inputs and I don't have an external VRef for ADC..please correct me if I'm wrong, I should set it to either ADCON1 = 000010. But I still have the same results, please see the attached image to make it clear how the response look like and my pin connections.
Henrik:
Try right-justifying it instead and see if that helps (ADCON1.7=1).
I tried that but as I slide to the fullest i have 3-4 reading only.

Thanks and regards,
tacbanon
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