1. Arm yourself with the PICs Datasheet.

2. Have a look at Section 5 - Timer1 Module

3. Have a look at section 5-1 T1CON... see if you can figure why I would set it to...

T1CON=%00000001

4. Find TMR1H, TMR1L anf PIR1... see why I would load them thus...

TMR1H=$E0
TMR1L=$00
PIR1.0=0

5. Read section 5.6 it might interest you...

6. Have a look at Bit 0 of PIR1 (Datasheet 2-5) what would this piece of code do?...

While PIR.0=0:Wend

Answers to these questions will qualify you as a Timer1 expert, and gain you the appropriate shoulder badge...

Very brief example (assuming your 32kHz clock)...

Code:
    LED var GPIO.0

    TRISIO=%00000000

    T1CON=%00000001
Loop:
    TMR1H=$E0
    TMR1L=$00
    PIR1.0=0
    Toggle LED
    While PIR1.0=0:Wend
    Goto Loop

    End
*smiles*

Next step will be the Interrupt Navigators badge.... however, I think I've mentioned before that interrupts on a 12 series PIC are a bit limited...