See if this will work.

Code:
#CONFIG
 __config _INTRC_OSC_NOCLKOUT & _WDT_OFF & _MCLRE_OFF & _IOSCFS_4MHZ & _CP_OFF & _PWRTE_OFF & _IOSCFS_4MHZ & _BOR_OFF

 #ENDCONFIG

DEFINE OSC 4 ' keep above your code and registers settings
Adcon0 = 0 'disable adc
ANSEL = 0 'gpio all digital
TRISIO = 0 'all outputs except gpio3

 
 do
 'serout2 gpio.5, 396, ["M"]
 high 0
 pause 1000
 low 0
 pause 1000
 loop
 end
Yes, I forgot the High/Low 0 statements are from the old Basic Stamp days.