Spent a very happy afternoon reading up on MIBAM - can't wait to try it out (is there a later version of the .pbp code or is the v1.0 you posted on the melbas page the one I should use?).

In preparation for that, I converted the now-workiing code to use Timer2. I think that since Timer2 is 8-bit (versus 16-bit for Timer1) that I don't need to worry about using the Least Significant register as you did with Timer1 but can just use TMR2:

Code:
CCPR1val      CON EXT      : @CCPR1val = (OSC*1000000/4)/ BLINKYFREQ
;CCPR1         VAR WORD EXT : @CCPR1 = CCPR1L
Timer2        VAR WORD EXT : @Timer2 = TMR2
CCPIF         VAR PIR1.5
And then this to turn it on:

Code:
;-- setup CCP1 and Start Timer2 --
CCPR1   = CCPR1val          ; set compare value
CCP1CON = %00001011         ; compare mode, special event 
Timer2  = 0                 ; clear Timer2
T2CON.0 = 1                 ; start Timer2
Is that it?