pic16F628

[Archangel]

Hello Daydream,
Mostly this code demonstrates why "copy/paste" does not work well for newbies, example:

DE@ DEVICE pic16F628
@ DEVICE pic16F628, HS_OSCFINE OSC 10

So allow me to direct you to threads which will help you.
http://www.picbasic.co.uk/forum/showthread.php?t=543

the above thread explaines the first 6 lines of your code.

BTW this code as listed probably will not work due to errors in those 6 lines, and those 6
lines will only work in PBP 2.6 and below, as PBP 3. does not support
PB assembler, only MPASM(read the listed thread carefully).

now the lcd defines
I will comment the code you listed so as to facilitate your understanding,
BTW this IS IN THE BOOK.

DEFINE LCD_DREG PORTA ' use port a for LCD
DEFINE LCD_DBIT 0         ' first data bit on porta.0
                                     ' D4 or LCD pin 11
                                     ' so PortA.1 = D5, A.2 = D6,A.3=D7
DEFINE LCD_RSREG PORTB 'LCD RS reg is on port B
DEFINE LCD_RSBIT 2         'use PortB.2 as rs bit Pin4 on LCD
define LCD_RWREG PORTB'LCD RW register is port B define should be ALLCAPS
DEFINE LCD_RWBIT 1        'use PORTB.1 as read/write bit pin 5on LCD 
DEFINE LCD_EREG PORTB  'use PORTB as E register
DEFINE LCD_EBIT 0         'use PORTB.0 for e bit pin 6 on LCD
DEFINE LCD_BITS 4'tells compiler you are using 4 bit data
                           'you could be using 8 or a whole port

DEFINE LCD_LINES 2 ' this is more confusing a typical 4 line LCD is really a 2 line
                              ' cut in half and stacked together

DEFINE LCD_COMMANDUS 4000 ' 4000 micro second delay
DEFINE LCD_DATAUS 250         '250 micro second data delay
TRISA=0                                 'sets all of portA to output status
TRISB=%00111100' sets PortB.2:5 to input status
'error as portb.2 should be an output

fout var word ' make word variable named fout
foutL var fout.byte0  'alias fout lower byte as foutL
foutH var fout.byte1  'alias fout upper byte as foutH

mode var byte  'create byte variable named mode
Delay VAR WORD 'create word variable named Delay
Delay_Us var WORD'create word variable named Delay_Us
x var word 'create word variable named x
tenth var byte 'create word variable named tenth
Z VAR BIT'use up a byte to create a bit variable named Z
'-------------------------------------------------------------------
Z=0' set value (initalize) bit variable to zero 
CMCON=7 'turn OFF analog comparators 
mode=0 ' set value (initalize) byte variable named mode to zero