Novice 16F83A BLINK LED program help

[owali]

I wanted to try a very simple LED program for my PIC16F84A. I wired it in the following manner:

5V to 4.7k Ohm resistor to MCLR pin
5V to VDD
VDD to ground via .1uF cap
20 MHz ceramic resonator across OSC1 pin and OSC2 pin
Ground to Vss
Pin RB1 to 470 Ohm resistor to LED to Ground

I put the following program into Microcode studio:
loop:
high portb.1
pause 50
low portb.1
goto loop
end

The melab configuration is the following:
Oscillator=RC
Watchdog time=Enabled
Power up timer=Enabled
Code up protect= Off

The strangest thing happens though... The LED only goes on when I move my hand close to the circuit. I don't even have to touch the circuit, and the LED remains on(does not blink) until I move my hand away.

I have no idea what I am doing wrong. Can someone PLEASE help me figure this out?? Thanks