What it means is that you have encountered a bug Micorchip introduced about the time they added the hi-tech compiler.
There are several ways that should set the library path including the project wizard. But the only one that works with this bug is to
Start at MPLAB main menu
PROJECT > BUILD OPTIONS > PROJECT
Then select the DIRECTORIES tab and select LIBRARY SEARCH PATH from the drop down box.
The needed path is C:\MCC18\lib
I didnt add any delay to get it to stop giving me the not finding c018i.o error, but i had to compile a lot of xlcd .c files in order to get the linker to work properly. I had some kind of error with that. It halted on some files and didnt build at all.
If i right click and compile each file before building project it worked ??