Sorry abt the second thread - just getting frustrated!
I did try your code but did not work - I know your code must be solid so maybe it is a fuse setting or a hardware issue?
I am using PBP 3.0.8.0 compiler with the mikroProg suite as my software. It lets you set the config bits when you load the hex file. My config bits set the oscillator as internal, watchdog timer enabled, power up disabled, master clear enabled, brown out detect enabled, low voltage program disabled, Data EE disabled. I can flash an LED so I know the PIC is good and everything is working on that end.
Thanks so much for taking the time and energy to help - I will try again tomorrow.