PBP seems to like it is the compiler is in c:\pbp instead of c:\{some dir}\pbp. I had this problem and then renamed the compiler directory to c:\pbp and it was fine. Or you could creat a c:\pbp directory and then copy the pbppic18.lib file to that dir. Just ignore the warning message. It is from the compiler saying that the config syntax has changed. Also make sure that you copy the 18Fxxxx.bas files from the usb18 sub directory to the \pbp directory, as these are different .bas files for using the USB features. Be sure to rename the original 18Fxxxx.bas files that are in the \pbp directory to something else.