If you are using the schematic posted... you did ground the OSC? The schematic is missing that.

MPASM is simple. Just install MPLAB from microchip (it is on your PBP CD) and tell MCS to use MPASAM.

The only thing you may need to do is change your configs for MPASM. Not a big deal.
http://www.picbasic.co.uk/forum/showthread.php?t=543