I am programming separately just to simplify things while I am learning.
No problem with that. As long as you don't use the programming pins in your target device, using the same circuit is also fine.
Just to clarify when programming it doesn't matter what other pins are connected, as long as the pins used to do the programming are set correctly?
Yes. This is no problem at all in our application.
So at the moment I am still at that same point and don't really know where to go from here.
Don't panic. These things happen all the time
Do you know why placing my finger on the 1K Resistor on pin 2 is making the LED blink. Any other suggestions as to what could be the problem?
It could be a loose connection on your board. Have you tried putting the resistor in another hole? If the grounded end made it to work, then I would have suspected the ground of your circuit.
I have observed your wiring again on the latest images. Notice the red dots.

- c1.JPG (7.65 KiB) Viewed 7266 times
For me it seems like, the cap is connected to pin 13 and 14. If that is the case, this is completely wrong.
For pin 13 and 14, the oscillator must be connected. One 20pf cap from pin 13 to ground. Another 20pf cap from pin 14 to ground. Can you verify this?
Thanks for all your time.
You are welcome DPX. Once I get you started, I expect you will help others through ROBOT.LK just as I do. Lets share our knowledge as much as possible in this short life time.