The oscillator block on the USB equipped devices are a bit complicated.
It looks to me as if you're trying to run off of the internal oscillator at 8MHz (judging by OSCCON setting INTOSC to 8MHz) yet the two least significant bits of OSCCON selects the primary oscillator - where you may or may not have a x-tal connected (you don't tell us anything about your hardware setup)?

And you have not told the compiler what frequency you're aiming to run at.

So, we need a bit more detail regarding what you're trying to do exactly.

/Henrik.