Ok, I have been playing around with this stuff and I have learned a few things. First off, I learned that DaddyB DOES know what he is talking about.

I used his Duty Cycle Calculator to work out exactly what values to use with the servo and, thru experimenting, have decided that the servo is ok. When driven from a pot, it drives really smooth as long as I stay in the -45 to +45 degree range.
I also believe that my problem is with the acceleromter. I think its output is not as smooth as I would like.
I added a delay to slow down the test program and it seemed to get jerkyer. So, I thought if I were to speed it up, maybe it would smooth out. I installed an external clock (20Mhz), and when I went to compile the program, found out that the minimum PWM freq is tied to the Osc Freq of the PIC. At 20MHz, I cannot get to desired usec needed to drive the servo as designed, so that experiment is out the door.
However, I did learn thet if I drop the PIC freq to 4MHz, I can do my PWM_INIT(400) to give me full control of the servo. (I was running 8MHz and the minimum PWM freq I could get was 500, which will not allow full 180 degree control of servo.