YES it works! Thanks, paul borgmeier, for pointing the grounding misunderstanding out. I *assumed* that it was separate from the 5v out of the regulator and was being fed directly from the power, so it was considered "separate." Sorry if that confused everyone and made it more difficult to help me.

I rewired a 9V battery to the servo instead so it appears that it WAS a power problem. I would rather use the power supply instead. Paul, you suggested some capacitors to the VSS VDD of the PIC, can you give me some cap numbers I should be using and how to wire them up?

My current power setup is powered from a wall wart at 7v into a 7805 5v regulator with a 100uF on the V-in pin, and a 10uF on the V-out pin. Much like this http://www.tkk.fi/Misc/Electronics/circuits/psu_5v.gif


Thanks everyone that helped.