If the PIC is flashing the LED then the device is running OK
You say you use Notepad to generate the HEX code via MPSAM. Why not try downloading the MPLAB from Microchip and use its editor to edit the code and then save the file as an ASM format and then quickbuild the project. I did this with the "final lcd code 2" text copied from your original post on 17th. However whilst it compiles fine, it still throws up a few warnings that might give others a hint as to what might be wrong ?
Code:
Clean: Deleting intermediary and output files.
Clean: Done.
Executing: "C:\Program Files\Microchip\MPASM Suite\MPAsmWin.exe" /q /p16F84 "lcdtest.asm" /l"lcdtest.lst" /e"lcdtest.err"
Warning[205] C:\LCDTEST.ASM 13 : Found directive in column 1. (__CONFIG)
Warning[202] C:\LCDTEST.ASM 20 : Argument out of range. Least significant bits used.
Warning[202] C:\LCDTEST.ASM 28 : Argument out of range. Least significant bits used.
Warning[224] C:\LCDTEST.ASM 434 : Use of this instruction is not recommended.
Warning[224] C:\LCDTEST.ASM 436 : Use of this instruction is not recommended.
Warning[224] C:\LCDTEST.ASM 438 : Use of this instruction is not recommended.
Warning[205] C:\LCDTEST.ASM 598 : Found directive in column 1. (END)
Loaded C:\lcdtest.COD.
BUILD SUCCEEDED: Tue Jun 19 16:02:30 2007
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