First thought. Being that you want to set the fuses in the code, have you commented out the code in the *.inc file?
"overwriting previous address contents"
Indicates you have not.
And you have and use the latest MPASM?
Hang in there. It will work.
And you may want to look at this if you have not already.
http://www.picbasic.co.uk/forum/showthread.php?t=543
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