If you look at this thread: http://www.microchip.com/forums/m540021.aspx I Think you'll find that you can get your PICKit2 working with the 45K22. If you don't wan't to mess around just get a PICKit3 from Digikey, Mouser or Microchip Direct and be done with it :-)

The timer code, as written, expects an 8MHz Clock, you'll need to change some things if you're using 16MHz, the CONFIG isn't one of them though. It should run fine with the CONFIG as posted.

/Henrik.