Hi All,
I tried this just the way it's published to no avail, but did manage to make it work after tinkering a bit. I used a PIC Demo board featuring a PIC16F690 and the 4 LEDs on Port C as follows:
Code:
#CONFIG
    __CONFIG _INTRC_OSC_NOCLKOUT & _WDT_ON & _PWRTE_ON & _MCLRE_ON & _WDT_ON

#ENDCONFIG
DEFINE OSC 4
TRISA = 0
TRISB = 0
TRISC = 0



;------[ Set Hardware ]------------------------------------------------------
    OSCCON=$70    '$70=8MHz, $60=4MHz 
    ANSEL=$00
    ANSELH=$0    
    ADCON0=$00
    CM1CON0=0 
    CM2CON0=0
   
    
	PORTA=%00000000
	PORTB=%00000000
	PORTC=%00000000     ' RAC6&7 set with Hserout command
	
	TRISA=%00000011      ' PORTA RA0 & RA1 input all other output
	TRISB=%00000000      ' PORTB all set to Onput
    TRISC=%00000000      ' PortC     RC7&RC6 for hserout
   
    Avar    var byte  
    Duty    var byte            
    Cycle   var byte    
;--[ Main Program ]-------------------------------------------------------------
Start:
    gosub FadeTest
goto start
     
;--[ Routine for fade on and fade off LEDs]------------------------------------
FadeTest:
        for avar = 8 to 11
        PortC = avar << 2 &%00000001 ;& OP damps a leading on signal   
                cycle=4    ;cycle is number of cycles of pulse    
            for Duty= 0 to 220 step 1
                pwm Avar,Duty,cycle
                next Duty
                cycle=3    ;cycle is number of cycles of pulse
            for Duty= 220 to 0 step -2
                pwm Avar,Duty,cycle
                next Duty
               
        next Avar
         Avar = 8
    Return  
         end