Pic16f88 pin output problem ( small piece upon multiple parts)

I am running into a frustrating problem in on of my slave pics where it will in turn let the arduino know all of the actions are complete. Currently i am stuck in a do while statement. The code i have built so far goes:

#CONFIG
__CONFIG _CONFIG1, _INTRC_IO & _PWRTE_ON & _MCLR_OFF & _LVP_OFF
#ENDCONFIG

' Set the internal oscillator frequency to 8 MHz
DEFINE OSC 8
OSCCON.4 = 1
OSCCON.5 = 1
OSCCON.6 = 1

stepper var PORTB.0 ' step signal to motor
switch var PORTB.1 ' go signal from arduino
direction var PORTB.2 'Direction of rotation,high= raise, low= lower
corker var PORTB.6 'out
filler var PORTB.7 'out
ready2 var PORTA.4 'out
ready3 var PORTA.3 'out
done1 var PORTA.0 'input
done2 var PORTA.7 'input

i VAR word ' iteration size
low direction 'intiliaze direction signal to low
'
TRISB = %00000010 ' Sets PortB I/O
TRISA = %10000011 'Sets PortA I/O
high ready2

start:
low stepper

do while (switch == 0)
loop
Low ready2
low ready3
gosub steppy

pause 250
high filler
pause 50
high corker
pause 500
Low filler
Low corker
pause 1000
do while (ready3 == 0 or ready2 == 0)
if (done1 == 1) then
high ready2
endif
if (done2 == 1) then
high ready3
endif
loop

goo start

steppy:
for i = 0 to 4027
high stepper
low stepper
PAUSEus 400
next
return
end

I have it wired to buttons to simulate the inputs and leds as outputs signals. As i press done1 button it will not set ready2 high but it done2 will set ready3 high. This leaves the logic stuck in the do while loop. Any help i would greatly appreciate. Thank you. ( i am new to the whole programming)

Uh... what does this have to do with Arduino? I think you're on the wrong forum - this is an Arduino forum.
PIC is not Arduino compatible, and that's not even programmed in the same programming language as Arduino uses. You should ask on a PIC forum - the PIC line is fairly popular, and there are numerous communities dedicated to it online.

I thought it was just a branch off from arduino section. Get to talk code problems for other controllers that are being used with arduinos.

Well, someone here may be able to help; we are not totally dedicated to Arduino to the exclusion of all else, but in the meantime, go and read the instructions, then go back and modify your post (use the "More --> Modify" option to the bottom right of the post) to mark up the code as such so we can examine it conveniently and accurately.