Unless you're building modular code you don't need the linker.
With MPLAB 8.01 you should use the RELEASE or DEBUG mode at the top of MPLAB (it'll warn you anyway)
Also don't use the _debug_on directive as MPLAB will set it based on the Release / Debug mode when you build all.
PLUS the target PIC may not enter debug when the _PWRTE_ON is used, try _PWRTE_OFF instead.
You also need to learn to write modular code properly; that means no absolute references and you should be very adept with MPASM before doing that. I've looked at your code and they're are some oddities that should be addressed.
Notes:
This is good
This is not, that include file already defines these SFRs
Code:
status equ 0x03
option_reg equ 0x81
portb equ 0x06
trisb equ 0x86
Also not good practice as "STATUS, RP0" is the correct way to write it
Code:
bcf status, 5 ;selecting bank0
Nope not modular as it's absolute code
Code:
countram equ 0x20 ;set counter to address to hex
count equ countram+0
count1 equ countram+1
count2 equ countram+2
As the single stepping debugger can run one instruction at a time you can simulate without delays just to confirm your target PIC has entered debug.
So blinking an LED at 20MHz