So is this command needed If I'm using any output pin? Does setting the OSC mode to 8Mhz do anything for the PWM as far as resolution or is 4Mhz good enough? (I'm dimming LEDs).

CCP1CON = %00001100 ' CCP1, PWM mode

and

OSCCON = %01110001 ' Internal 8MHz osc.
DEFINE OSC 8