Hi,
Make sure you select the correct target device in the drop down list in MicroCode Studio before compiling.
If you're compiling for a chip which doesn't have a PortE (for example) then the compiler doesn't know what to do with the command LOW PortE.2 so it throws a Syntax Error.

I've tried your code here, compiling ot for 16F877A, and it compiles without any errors.

/Henrik.