Trying to use stand alone FT232RL not working (w/ 328)

MatCat:
RX of breakout is to TX of chip, and TX to RX, plus I tried them backwards too just to be sure...

RX to TX is correct way! How did you connect the power to the chip? Will you please put up a schematic of your connections! The cap capacity does matter but I've tried caps from 470pF to 100nF and they all seem to work. Which caps did you try out?