Sheldon,
Can you describe a little bit what this device and code consists of, what it's doing and so on? Perhaps a block diagram?
That will probably help others, including me, to come up with more relevant suggestions.

For example, does it have some kind of user interface, buttons, LCD or perhaps a console interface of some sort to speak to humans? If so, you could offload that to a secondary PIC and then have some less verbose Communication of those settings etc between the UI controller and the main controller.

You know that things like HSEROUT and ARRAYWRITE etc litterally EATS away codespace, something like 6bytes for each and every byte/characters. Using something like the "strings in codespace" routines discussed on this forum might be Another way (if you're not already doing that). And, if you're NOT doing any of that stuff what the heck ARE you doing that takes up 128k?

Again, it's not easy to come up with suggestions without any sort of background information. It's not like there's a magic compiler directive that just shrinks the code ;-)

With that said, at some point or another the limit IS of course reached.

/Henrik.