Not sure it's got anything to do with your problem but flipping INTCON.5 does not start/stop TMR0 - it enables/disables the interrupt.
Code:
Timer0_Count:
INTCON.5 = 0 ' STOP TIMER <----- No it doesn't
T0Count1 = T0Count1 + 1 ' inc counter on interupt flag
TMR0H = $63 ' preset Timer 0 to a 10ms timer
TMR0L = $C0
INTCON.5 = 1 ' START TIMER <------ No it doesn't
@ INT_RETURN
RETURN
Also, verify that your oscillator is actually running at the expected frequency. A simple LED blinking at 10Hz will tell you if it's off bu a factor of 2.
/Henrik.
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