...and if the FTDI is removed, the PIC fries, and becomes unusable.

The Background: I'm an senior taking a mechatronics course for the first time. Our project was to build a device that would count (using two 7-segment displays) from 0 to 99, with a toggle switch that would make the display start counting down from wherever it is. The circuit also would need a reset button to start the program from the beginning.

Hardware:

PIC - 18F2550, bootloaded ( /1 (4 MHz), /2 (/1), 96 MHz PLL/2, HS)
FTDI - FT232R Breakout
5 V Voltage Regulator

Now, If I had to guess, I'd say it was being caused by the FTDI being grounded funny, or its DTR not being hooked up properly. BUT! I'm sure my current setup is correct (I will post pictures if that'll help). The DTR goes to the PIC's MCLR, which splits off to +5 V, and a switch that goes to ground. Also, the FTDI is grounded in and of itself. There are no shorts anywhere on the board that my multimeter can find, and both sides of the PIC are grounded and powered.

The program runs just fine, but if I turn the power off, unplug the FTDI, and turn the power back on, the circuit doesn't do anything. And if I run the program with the FTDI still in, and unplug the FTDI, the PIC not only doesn't work, but also refuses to work ever again, even if I bootload it again.

Right now, it's less about the grade (what we've done will land us a solid B), and more about being curious. Anyone know what the problem is? Thank you in advance!