Vojtech,
Thanks for the example. I couldn't get it to build right, I am still on CW V5.1 and PE 2.98. But regardless I found my problem. In my code I had a piece of code that didn't preserve the state of PTG5 properly and cleared the pin on each pass through my code loop. So even though I was setting it, it was getting cleared else where. I was only using a multimeter to test, so I didn't see the brief state change.
But that aside, I tried a test very similar to what you sent me. Just intializing the clock and pin PTG5. I set PTG5 and used a multimeter to read the state of PTG5. I couldn't get this to work at first. A couple of days later it worked for me. I suspect I may have been probing the wrong via on my PCB design. The old put it down and come back to it later, always helps clear things up.
Thanks all for the help. Sorry this is a non-issue, just my own mistake.
For anyone else using the internal clock and want to use EXTAL and XTAL pins as GPIO. It works, definitely works.