That code sure doesn't compile but it's not because of RCSTA1.7=0 but rather END SELECT. If I remove END SELECT the reset does compile here.
Since you claim it compiles if you comment out RCSTA1.7=0 I suspect the code you posted isn't what you're trying to compile - which doesn't help.

Which version of PBP do you have and which version of MPLAB/MPASM are you using?

Goto the MPASMX folder and open the file p18f46k80.inc, look for the lines:
Code:
RCSTA            EQU  H'0FAB'
RCSTA1           EQU  H'0FAB'
Also goto your PBP3 installation folder, open DEVICES and then open PIC17F46K80.PBPINC, look for the lines:
Code:
RCSTA1              VAR BYTE EXT     ; BANKA
RCSTA               VAR BYTE EXT     ; BANKA (Legacy/Migration
Can you find these entries in both of the above files?