(This is off-topic for this bit of the forum, PM me if you need any more info.)
If I understand your problem correctly, the Olimex board is a Picstart Plus clone (which is a programmer, not an emulator).
Select "Simulator" when setting up the project in MPLAB, then when you want to program the device, select "Picstart Plus" from the "Programmers" menu. (I use MPLAB 8.2, so the menus may be slightly different)
Lee