I put a .01uf capacitor (in addition to the 1uf cap on the programmer board) right next to the PIC and this allowed the Infrared sensor to be connect with no problems. My only guess is that it doesn't like having supply wires 4 inches long without have a capacitor very close by.
Oh looking above I can see that "Skimask" suggested putting it close to the rail.
Thanks, Skimask!
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