Sorry about the last post - it had errors.....

WHY won't this work? The array IS contigous, isn't it?

pLED var bit[4]

SYMBOL pLED[1]=PORTA.3 'Network activity LED1
SYMBOL pLED[2]=PORTA.4 'Network activity LED2
SYMBOL pLED[3]=PORTA.5 'Network activity LED3
SYMBOL pLED[4]=PORTA.6 'Network activity LED4

Then:
start1:
if packetRcvd=1 then 'Packet has arrived!
pkt_cntr = pkt_cntr+1 'Increase the counter so we can turn on new LED
toggle pLED[pkt_cntr] 'Turns on new packet LED
endif
if pkt_cntr=4 then pkt_cntr=0 'We have run through all 4 LEDs so reset counter
PacketRcvd=0 'Done processing packet data so reset flag
goto start1