kinda confused about the #DEVICE statement

[asmboy]

I need to tell my 16F886 that i want to read 10 bit data - as the default is to report the ADC at only 8 of its 10 native bits

so i added the #device statement at the head of a program that uses the ADC to tell it use adc=10 bits

problem is that no matter how i try to do it my
ver 4.066 compiler says

" cannot change device this far into program "

at line #2 - first compiled line ???
?
( i have stripped ALL the rest of the code - to make is show more clearly and heres is the smallest fragment that shows the problem )
If i comment out the #device line - the rest of the rather extensive program this frag is lifted from - works fine what the HECK is this dumb guy doing wrong with the #device statement ???
not being able to switch on 10 bit adc reading is killing me
//
#device PIC16F886 *=16 ADC=10
#include <16f886.h>
#include <stdlib.h>
#FUSES NOPROTECT,INTRC,NOWDT,NOMCLR,NODEBUG,NOLVP,NOIESO,NOFCMEN,PUT,NOWRT,NOFCMEN,NOBROWNOUT
main() {
for (;;) {
}
}

[PCM programmer]

Do it like this, in this order: