Actually this
Code:
leds.byte0 = PORTA
 leds.byte1 = PORTC
 leds= 0
and this
Code:
TRISA = %00000000
 TRISB = %00100001
 TRISC = %00000000
 PORTA = 0 'LEDs off
 PORTB = 0
 PORTC = 0
is "program" but yeah, something's weird.....

Are you using the ICD in Microcode studio? I don't know how that works exactly but my guess is that a "program" which is just running off into the wild like that probably doesn't work very well with the software debugger since it inserts calls to the "debug engine" between each statement. When there's no more statement there will be no more calls to the debug engine and it'll look like the program stopped.

If that really IS all of the program then at least add an END statement to it or better yet, for ICD testing purposes, add an endless loop at the bottom
Code:
Forever:
  i = i + 1
  Pause 1
Goto Forever
/Henrik,