Here's the exact include I was using with mplabs

Code:
        NOLIST
    ifdef PM_USED
        LIST
        include 'M16F6xx.INC'	; PM header
        device  pic16F690, intrc_osc_noclkout, wdt_on, mclr_on, protect_off
        XALL
        NOLIST
    else
        LIST
        LIST p = 16F690, r = dec, w = -302
        INCLUDE "P16F690.INC"	; MPASM  Header
        ;* __config _INTRC_OSC_NOCLKOUT & _WDT_ON & _MCLRE_ON & _CP_OFF
		__config _XT_OSC & _WDT_ON & _MCLRE_ON & _CP_OFF
        NOLIST
    endif
        LIST
When I switched to melabs, I modified the top one. I'm guessing that the pickit / icd2 wasn't the problem but maybe a difference in the compiler. What do you think?
Rob