Thanks for the quick response and the pictures, Picard!
OK, I'm seeing all the same connections and power LED + yellow LED on the debug module.
So it sounds like the USBpal board does need to be connected for anything to show in the IDE (since your screenshot is showing the IC on the USBpal board). perhaps I have a board issue, not a programmer configuration issue.
- I will recheck/reflow everything.
I must admit, I wasn't sure about the values for the 4 inductors (perhaps you can confirm), and I think my crystal is 13Mhz instead of 12 (not sure how I mis-ordered that one!).