I would post the schematic but at the moment its drawn rough on a piece of paper. Probably one of the reasons why I have this problem.
I seem to have really bad noise on my power rails. Below is a picture of the CLKOUT which doesn't seem promising.
Before you say it yes I have filtering caps on the power regulator and yes I have a decoupling cap on the PIC16F627. I will probably redo my design and simulate it to find the bug.
