Sounds like you're using MPASM with PM config options.

@ DEVICE config options are only for use with the PM assembler. You can setup MPLAB
to use PM as the assembler, but I would stick with MPASM in the MPLAB IDE.

Edit the default device header file to set your config options, or comment them out in
the header file and drop them into your source.

See this thread http://www.picbasic.co.uk/forum/showthread.php?t=543 for info on working
with both options.