> I have the OSC set as HS and it runs at 4 mhz

That should be no problem.  There have been some recent issues with the
PLL enabled.

> The basic code in the sim looks like this:-
>
>         Movlw 127
>         Movwf ADCON1
>
>         btfsc PORTA,5
>       goto  handle_high
>       goto  handle_low
>
>
> handle_high
>      goto $
>
> handle_low
>      goto $
>         END

This looks fine.  What is the symptom?  It would be useful to set another
port pin high or low before the infinite loops so that you can see which
path it took when running on a real chip.


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