>                                                ...I have put the chip
> in a breadboard and put +5V on pin 11 (V DD) and 0V on pin 12 (Vss)

Do you have a oscillator of some sort?  I've never used the ICD, but I
don't think it will provide a clock like an ICE can.  Your demo board
also would have taken care of that for you too.  Look at the "Special
Features of the CPU" section of the data sheet for oscillator options.

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