I have the same problem with a pic12CE509 with the use of only 25 variables. So the bank1 is not use by the compiler. What is possible to do tu use the 40 bytes of ram ?
i use PCW software on a p12C671 project. There are some problems during emulation, i use a Mathias emulator, and when i expect the .lst file, there is a call at 0x3FF adress at the Reset vec ...