What is wrong with this dsPIC30F2020 blink example?
It looks like you're using a 16 MHz crystal, but telling the compiler that your frequency is 160 MHz:

#define _XTAL_FREQ 160000000

Also, at 16 MHz, each clock cycle is \$1/16,000,000 = 62.5ns.\$

You are calling __delay32(150000000);, which would equate to \$150000000\cdot62.5ns=9.37s\$. So the LED will be on for about ten seconds, then off for about 10 seconds.