I agree with others that the caps on the crystal look kind big for 22pF. Another thing I'd try is adding .1uF bypass caps to the power leads of the 328, right on the breadboard near the pins.
If the chip responds and runs the blink program when it's in the board, it should do so on the breadboard. It's not starting for some reason. You might try a manual reset after you apply power to the breadboard. I don't know how picky the AVRs are, but I've had trouble with the low power PIC chips not starting without a bypass cap on the power or if the power wires leading to the chip were long and thin. This made the rise time too slow and PIC wouldn't come out of reset.