Chris,
I think you are missing the point of exactly how PB and the PIC store any variable. When a variable is stored, it is stored as a binary number in a byte-wide file register.
Simple example:

Code:
B1  VAR  BYTE
B1 = 172
Now, this is oversimplified, but this is what is happening. The compiler :
1)Allocates a register in memory for B1
2)Generates Assemby code to Store "10101100" in that register
3)Remembers that any time you reference that variable again, it will actually be referencing the allocated register, and the value therein.


Now, lets add some more code:
Code:
R0  VAR  BIT
R1  VAR  BIT
'...
R7 VAR BIT

R0 = B1.0
R1 = B1.1
'...
R7 = B1.7
Now the compiler looks for a specific bit in the file register for B1, and assigns the value of that bit to the variable.

That Help?

Steve