Since the I'm alive output is outside of and before Main it looks to me as if the PIC is resetting and starting over. Try something like:
Code:
serout2 PORTC.6, 16468, [BIN8 STATUS, "  -  ", BIN8 PCON, 10,13]
serout2 PORTC.6,16468,[13,10,"I'm Alive",13,10,10]
What does it say when you power up and what does it say when you get that rouge output?

/Henrik.