So, I finally found out what was wrong. It was not in the circuit, but the software. From what I had understood Microcode Studio would compile the PicBasic pro program to a hex file and pass that to the programmer software. When I looked at the code in the programmer it was just a bunch of 0FFFs. So I then found the compiled hex file and opened that in the programmer and then programed the pic and voila! Blink. Apparently Microcode studio doesn't pass the hex file along as the stamp editor does. Thanks for all your help and happy New Year.

By the way I used an Athena rs232 to ttl line driver I had laying around to create a debug to the pc using hyperterminal thru my usb port (using a serial to usb converter.) The microcode studio doesn't seem to have a com 4 port on the serial communicator. So all is well.