Ahhh, yes... the wrong xtal would do it.
No amount of fooling with code and registers will help if the hardware is broken.
Last week I spent 2 hours looking over a data sheet to see what registers and settings were wrong when I couldn't get a new circuit to work.
The problem turned out to be 1 unsoldered pin on a 44TQFP part...
Let us know how it goes with the right xtal.
steve
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