tmr2 interrupt problem

[mister_e]

Well the prescaler was already 1:16 at the first post.. hence why you didn't had any better results
Now what you need to do is to use the POSTscaller. if you set the postscaller to 1:2 you'll have a 2mSec*Prescaller int. 8mSec, postscaller 1:4 and so on

        T2CON = %00011010
                'X------- Unimplemented
                '-0011--- postscale 1:4
                '-----0-- Timer2 off
                '------10 prescaler 1:16

seems to work with the second suggestion

// Snip
        ON INTERRUPT GOTO ISR
        PR2 = 124   ' load period register for 2mSec 
        PEIE = 1    ' Enable peripheral interupt
        GIE = 1     ' enable Global interrupt
        TMR2ON = 1  ' TMR2 ON
        GOTO LOOP                

        disable
ISR:
        TOGGLE PORTB.0
        TMR2IF = 0  ' Clear interrupt flag
        resume
        enable
// end snip