I am down with just the LCDOUT commands:
still giving awkward letters on the LCD:
INCLUDE "modedefs.bas" 'Includes supoprt for PicBasic language

OSCCON = %01110000 '8 Mhz
DEFINE OSC 8

'/////////////////////////
'// LCD configuration //
'/////////////////////////

DEFINE LCD_DREG PORTB ' Set LCD Data port
DEFINE LCD_DBIT 4 ' Set starting Data bit (0 or 4) if 4-bit bus
DEFINE LCD_RSREG PORTB ' Set LCD Register Select port
DEFINE LCD_RSBIT 0 ' Set LCD Register Select bit
DEFINE LCD_EREG PORTB ' Set LCD Enable port
DEFINE LCD_EBIT 1 ' Set LCD Enable bit
DEFINE LCD_BITS 4 ' Set LCD bus size (4 or 8 bits)
DEFINE LCD_LINES 2 ' Set number of lines on LCD
DEFINE LCD_COMMANDUS 2500
DEFINE LCD_DATAUS 250
DEFINE CHAR_PACING 2000
pause 1000


Mainloop:

lcdout $FE,1, " This is a test" '
lcdout $FE,$C0, "Next or Select" '
pause 200

GOTO Mainloop
End