Thanks Joe but it still didn't work with your lines of code. The error I get is:

Error blink.asm 66:[235] opcode expected instead of '_config'

The CMCON line gives a compiler error as well. Is this command not supported on the PIC16F886 perhaps?

The total code is:

Code:
@ __CONFIG _CONFIG1, _INTOSCIO & _WDT_ON & _PWRTE_ON & _MCLRE_OFF & _LVP_OFF & _BOR_ON
CM1CON0 = 0
CM2CON0 = 0

TRISB = %00000000
ANSEL=0
ANSELH=0
define osc 4
'CMCON = 7
led var PORTB.0
led1 var PORTB.1
led2 var PORTB.2
led3 var PORTB.3
led4 var PORTB.4
led5 var PORTB.5
led6 var PORTB.6
led7 var PORTB.7
loop:   High led         ' Turn on LED connected to PORTB.0
        High led1         ' Turn on LED connected to PORTB.0
        High led2         ' Turn on LED connected to PORTB.0
        High led3         ' Turn on LED connected to PORTB.0
        High led4         ' Turn on LED connected to PORTB.0
        High led5         ' Turn on LED connected to PORTB.0
        High led6         ' Turn on LED connected to PORTB.0
        High led7         ' Turn on LED connected to PORTB.0
        Pause 500       ' Delay for .5 seconds

        Low led           ' Turn off LED connected to PORTB.0
        low led1
        low led2
        low led3
        low led4
        low led5
        low led6
        low led7
        Pause 500       ' Delay for .5 seconds

        Goto loop       ' Go back to loop and blink LED forever
        End