OK I think got confused since some code is using the MPASM folder (MPASM Suite folder of your MPLAB installation) and others have just the PBP folder
I dont have a MPASM Suite folder of my MPLAB installation, cause its not installed. I am just using PBP with Microcode studio.

ok Henrik's post explains alot, I looked at the datasheet before but didnt understand that section, figured it was part of the assembly language and left it alone. but it makes more sense now. ok based on henriks notes, lets see if this looks right

default 18f4550.inc has
__CONFIG _CONFIG1H, _FOSC_HSPLL_HS_1H & _FCMEN_OFF_1H & _IESO_OFF_1H

so if this is right based on the datasheet, and henriks note then to make it use the internal OSC and USB with HS then it should read
__CONFIG _CONFIG1H, _FOSC_INTHS_HS_1H & _FCMEN_OFF_1H & _IESO_OFF_1H
??? is this correct /or the correct way???