Can anyone help me with PIC16F723A Programming?

[yumi]

I am working with a PIC16F723A chip and I am trying to program it to toggle a pin (RA1) on and off. I am pretty sure I have the circuit setup correctly (below is what I have setup), but for some reason I get an error when trying to program it....

So, I am using MPLAB X IDE v1.70 on OS X version 10.8.2. The project configuration in MPLAB X is setup with the device of PIC16F723A, hardware tools of ICD 3, and compiler toolchain as XC8 (Location: /Applications/microchip/xc8/v1.12/bin). There is no supported plugin board. It is NOT setup to power the target circuit from the ICD 3.

The error I am getting is "Connection Failed.If the problem persists, please disconnect and reconnect the ICD 3 to the USB cable. If this does not fix the problem verify that the proper MPLAB X USB drivers have been installed."

The warning I am getting is "CAUTION: Check that the device selected in MPLAB IDE (PIC16F723A) is the same one that is physically attached to the debug tool. Selecting a 5V device when a 3.3V device is connected can result in damage to the device when the debugger checks the device ID. Do you wish to continue?"

Here is how I have the circuit setup...
PIC16F723A PIN 1 is connected to ICD3 MCLR PIC16F723A PIN 28 is connected to ICD3 ICSPDAT PIC16F723A PIN 27 is connected to ICD3 ICSPCLK PIC16F723A PIN 1/ICD3 MCLR is connected to external VDD (+3.3V) through a 10K resistor (I have also tried a 4.7K) PIC16F723A PIN 8 is connected to PIC16F723A PIN 19 PIC16F723A PIN 19 is connected to GND PIC16F723A PIN 20 is connected to VDD (+3.3V)

I am checking the chip using a Tektronix Oscilloscope and when I continue from the warning message, I see data being transfered on the ICSPDAT pin, but nothing has changed for the RA1 pin.

Here is the code I am using:
Code (Text):

#include <stdio.h>
#include <stdlib.h>
#include <pic16f723.h>

void main(void){
     int i = 0;
     TRISAbits.TRISA1 = 0; // RA1 to output
     ANSELAbits.ANSA1 = 0; // RA1 to Digital I/O

     while(1){
         PORTAbits.RA1 = 1;
         for(i = 0; i < 1000; i++);
         PORTAbits.RA1 = 0;
         for(i = 0; i < 1000; i++);
     }
}
I have checked the circuit design several times, I have checked to make sure the chip is correct (the silkscreen on it says PIC16F723A-I/SP 1142D3V). I have also tried programming it by supplying +3.3V from an external supply and a +5.0V from an external supply.