Darrel,
Thanks again! How did you come to the conclusion it would take 48 cycles? By examining the .asm file? I'm asking because I just made a quick'n'dirty test like this:

Value = 20000
Start:
GPIO.0 = 1 'Set output
Delay = Value /*$004D
GPIO.0 = 0 'Reset output
PauseUs 700
Goto Start

But when scoping the output I get about 250uS. The pause is dead on 700uS so I know the oscillator is working correct. Now 250uS is alot better than my previous 'all time low' of 320uS, so at least I'm heading the right direction. ;-)
Any ideas?

I really appreciate the help!
/Henrik Olsson