OK, so you don't need the USB connection, just power (+5 and Ground).
Some prototype boards have the power and ground busses split in the middle. If you are feeding the power in on the left it might not get to the wires on the right. Check that.
Reset (pin 1 of the chip) should connect to +5 through the resistor.
Sometimes a proto board will have a bad connector. Something might not be connecting. Wiggle all the connections.
Also the breadboard itself has a high capacitance, I'd plug the crystal directly into the holes near the chip.
There are no decoupling caps either, often on breadboards you can get away without because of the high capacitance, but I'd put a couple of 0.1uF caps right near the power pins of the chip.