srigopal - I tried to do something similar to your code and ran into the same problem with flickering. If all you want to do is fade out (or in) 2 LEDs at the same rate, try using 1 output pin with 2 LEDs (each with a current limiting diode, of course). I have this working with red LEDs, but you may need a transistor for heavier current drawing ones like blue or white.

Dwayne - is your code an example of a hardware pwm? Isn't there a PicBasic command for this? Also, do you know how to use a hardware pwm signal to fade out LEDs?

Ross