Is the code below at fault?
OSCCON1=0x10; //32-MHz 2xPLL of 16MHz HFINTOSC (bits 0-3 are Clk Div)
OSCFRQ =0x110
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Yes. The value for OSCFRQ is wrong. I think you got confused between values in hex and values in binary. OSCFRQ is an 8-bit register with only bits 2:0 used. 0x110 is a hex literal requiring 9 bits. With this value, it actually sets bits 2:0 to all 0, which is a reserved value.
The correct value for a 16 MHz frequency for HFINTOSC (which will give 32 MHz with the 2xPLL option) is 101 (binary), so 5 in decimal or 0x05 if you prefer hex.
So that should be:
OSCFRQ = 0x05
Is the CONFIG 1 setting wrong?
#pragma config CLKOUTEN=1 //CLKOUT is Disabled
#pragma config FEXTOSC=4 //External Osc Disabled
#pragma config RSTOSC=0 //HFINTOSC 32MHz startup osc
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It appears correct. Note that for RSTOSC, this defines the startup config. But you change it later on to 2x PLL, so this setting could be also 1, or 6 (slower) or even 5 (slower yet). Doesn't really matter as long as you use an internal oscillator, the oscillator will be reconfigured when you set OSCCON1 and OSCFRQ.
Also note that there are two ways of setting 32 MHz from HFINTOSC. Either directly, or via the 2x PLL (the latter being what you set with OSCCON1 and OSCFRQ). There is no 64 MHz setting possible from HFINTOSC.
Is my TMR1 clock setup for the Reference Clock source wrong?
T1CKPS0=1; // Set TMR1 prescaler 1:2 HFINTOSC
T1CKPS1=1; // 0x11 = 1/8 Prescaler
TMR1CLK=0x01000; // Reference Clock Output(stays awake during sleep)
CLKRCON=0b10010000; //HFINTOSC
CLKRCLK=0b00000001; //RefClk 50%DC No prescale
You seem to have again mixed hex literals with binary for TMR1CLK. '0x' prefix is hex, '0b' is binary. So, another thing to fix.
'TMR1CLK=0x01000' will actually set 0 to TMR1CLK.
You seem to have swapped the comments for CLKRCON and CLKRCLK.
CLKRCLK sets the clock source, CLKRCON set the base divider and duty cycle. Other than comments, the values seem correct here.