Seems to work as design here using the following
Code:
        
        @ DEVICE PIC16F886, INTOSCIO,WDT_OFF,MCLR_OFF,LVP_OFF,PROTECT_OFF,BOD_OFF,CPD_OFF,IESO_OFF,FCMEN_OFF,PWRT_OFF 'Device line
        OSCCON= %01100000
        
        Include "bs2defs.bas"

        DEFINE LCD_DREG PORTC 'LCD data port 
        DEFINE LCD_DBIT 0 'LCD data starting bit 0 or 4 
        DEFINE LCD_RSREG PORTC 'LCD register select port 
        DEFINE LCD_RSBIT 4 'LCD register select bit 
        DEFINE LCD_EREG PORTC 'LCD enable port 
        DEFINE LCD_EBIT 5 'LCD enable bit 
        DEFINE LCD_BITS 4 'LCD bus size 4 or 8 
        DEFINE LCD_LINES 2 'Number lines on LCD 
        DEFINE LCD_COMMANDUS 2000 'Command delay time in us 
        DEFINE LCD_DATAUS 50 'Data delay time in us 

        ANSEL=0
        ANSELH=0
        ADCON0=0
        CM1CON0=0
        CM2CON0=0
        VRCON = 0
        PORTA=0
        PORTB=0
        PORTC=0
        TRISA=0
        TRISB=0
        TRISC=0
        PAUSE 1000
                
start:
        
        lcdout $FE,1,"TEST THE LCD"
        
        lcdout $FE,$C0," TEST"
        PAUSE 1000
        high porta.2
        pause 500
        low porta.2
        pause 500
        high portb.5
        pause 500
        low portb.5
        lcdout $FE,1,"RESETTING"
        pulsout porta.5,1000
        pause 1000
        pulsout porta.5,1000
        pause 1000
        goto start