Breadboarding atmega328 yields unexpected behavior (newb needs help)

justanotherhumanoid:
Okay, made the recommended changes (reset to +5v via 10kOhm resistor and putting resistor in series with LED) and attached new pic. I thought the crystal was hooked up properly, though - I've got the crystal across X1-X2, then a 22pF cap to ground from X1 and X2 as well. Is that incorrect? Should be able to see what I'm talking about in the new photo. How should this be hooked up if that's what I did wrong?

Still getting the same behavior - LED stays lit up and never blinks. Thoughts?

Yikes... here's what, unhook everything, then get a multimeter and get familiar with the internal connections of your breadboard. See which set of holes are connected to one another. -- then you'll see how you currently wired your breadboard doesn't make sense.

You're basically treating it's holes as holes of a PCB, and you expect it to read your mind.