PIC16F877A Timer0 delay problem?
By my calcs, with a 4MHz system clock, and a 1MHz timer clock, and a prescaler of 32, that's a tick frequency of 31250 Hz.  Your tick time is 32 microseconds.  To count to 0.005 seconds, your need 156.25 clock ticks.  Round up to 0x9D.

So, you can set the timer to 0, wait until it reaches 0x9D, toggle your bit, then reset to 0.

Another way to do this would be to preset the timer to 0xFF-0x9D, and enable the interrupt.  The interrupt, triggered when the timer rolls over from 0xFF to 0x00 would toggle your bit, and reset the timer to 0xFF-0x9D. (or more accurately 0xFF-0x9D+the current value of the timer, which hasn't stopped during the interrupt)