I think Charlie is right, but the code does seem to read correctly to a degree, but I think the resetting may because the config is only setting the speed of the processor, no other options have been set which to me might be the cause as to the resetting of the PIC. But then I use PBP 2.60c and this config statement looks different so I guessing the OP is using PBP3, so maybe this thread needs moving to the correct section ?

Also I have to ask

Code:
i var word
for i = 1 to 10
PORTC.0 = 1
pause 500
PORTC.0 = 0
pause 200
next i
Why use a word variable for i when it's only running 10 cycles of the for next loop. Defining it as a byte would be fine