Lets have a look at this

Code:
ToggleLED1:
    PIE4.0 = 0                                  ' Stops Timer1  no it dosent
    TOGGLE PortB.4
    T1CON.0 = 0                                 ' Resets Timer1 gate no it dosent
    T1CON.0 = 1
    TMR1H = 2 : TMR1L = 24
'    TMR1H = 4 : TMR1L = 161
    PIE4.0 = 1                                  ' Restarts Timer1 no it dosent
@ INT_RETURN

should be more like

Code:
ToggleLED1:
    T1CON.0 = 0                                   ' Stops Timer1     
    TMR1H = 2 : TMR1L = 18
    T1CON.0 = 1                        ' Restarts Timer1
    TOGGLE PortB.4 
@ INT_RETURN