hi,
does your code even compile correctly? does MPLAB gives any error messages upon compiling?
I've never used PIC18, but I've used dsPIC with C. My first guess is that you can't set CCPxMy directly like you did in your code. I think you need to set CCPxCON instead, because that is the name of the register. So, instead of;
CCP1M3=1;
CCP1M2=1;
I 'think' you should do this instead;
CCP1CON = 0b1100;
And for a start, try testing your PWM on an LED, instead of a servo straight away. So with an LED, you should be able to vary the brightness of it with different PWM values. Once this works, then try on a servo.
See if this gives any difference.