Louie, thanks for looking it over but I have to admit the mistake of operator error on my part I was using the sync output on the signal generator instead of the real output. Here is the working code.

Code:
#CONFIG
	__CONFIG _CONFIG1, _FOSC_INTOSC & _WDTE_OFF & _PWRTE_ON & _CP_OFF & _CPD_OFF & _BOREN_OFF & _CLKOUTEN_OFF & _IESO_OFF & _FCMEN_OFF
	__CONFIG _CONFIG2, _PLLEN_ON
#ENDCONFIG

OSCCON = %01110000		'8Mhz clock with 4x PLL (32MHz)
APFCON = %00000001		'CCP1 on RA5 (pin 2) T1G is RA4 (pin 3)
PORTA = 0				'RA5 all low
TRISA = %00100000		'RA5 input
CM1CON0 = 0 			'turn off comparitor 1
CM1CON1 = 0 			'configuration of comparator 
MDCON = 0 				'turn off data modulator
DACCON0 = 0 			'turn off DAC 
DACCON1 = 0				'turn off DAC
ANSELA = 0				'All pins digital
OPTION_REG = %10000000	'Weak pull ups off
FVRCON = 0				'Bunch of stuff disabled
CPSCON0 = 0				'Cap touch sensors off
CCP1AS = 0
PIE2 = 0
T1GCON = 0
INTCON = 0


DEFINE OSC 32
Include "modedefs.bas"

Symbol		Capture = PIR1.2
T1			VAR word
PW			VAR word

reload:
CCP1CON = %00000101

T1CON = 0
TMR1H = 0
TMR1L = 0
T1CON.0 = 1

Capture = 0

while !Capture
wend

T1.HighByte = CCPR1H
T1.LowByte = CCPR1L

CCP1CON = %00000100
Capture = 0


while !Capture
wend


PW.HighByte = CCPR1H
PW.LowByte = CCPR1L

PW = PW-T1

serout porta.4,N9600,[#PW,10,13]
goto reload

end