You are writing the character over and over to ram, but never calling it!

Try this:

Code:
DEFINE LCD_DREG PORTD   ' LCD Data bits on PORTD
DEFINE LCD_DBIT 0       ' PORTD starting address
DEFINE LCD_RSREG PORTD  ' LCD RS bit on PORTD
DEFINE LCD_RSBIT 5      ' LCD RS bit address
DEFINE LCD_EREG PORTD   ' LCD E bit on PORTD
DEFINE LCD_EBIT 4       ' LCD E bit address
DEFINE LCD_BITS 4       ' LCD in 4-bit mode
DEFINE LCD_LINES 4      ' LCD has 4 rows
LCDOUT $FE, 1 ' Clear LCD
PAUSE 500 ' Wait 0.5sec for LCD to initialize
LCDOUT $FE,$40,$0E,$1F,$11,$11,$11,$1F,$1F,$1F 
pause 500

LCDOUT $FE,$80,0 'Write character on screen
pause 1000

END
EDIT: Too slow