Funky,
How did you make out? When I took my device from the development board to a circuit board, I had similar problems. As Bruce mentioned, a 20Mhz crystal will work good. In fact, I use a 20Mhz resonator on all of my devices because they are subject to more shock and seem to be a bit more reliable. Anyhow, I have found that if the capacitor value is not correct, you will get this error message. Check the cap on Vusb and use something that is more than 400nF. Once I changed this capacitor on Vusb, everything worked great.
Good Luck,
Chris
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