As you may know the PicKit2 works from the USB port. I had a problem right off the bat. Actually two. It looks like for most devices you cannot use MPLAB and must use the HEX program software that comes with PicKit2. Therefore you have no disassembler or debugger etc. Second, I'm having this problem now and if I get it resolved I will post the solution:
OK, my PicKit2 has no problem with the 16F690 but I have hooked up a cable to the output connector so I can try to program a 10F206 chip. I get the "VDD error" and I scoped it out and it looks like all the signals are being loaded down. I have checked and re-checked the connections and according to the PicKit2 manual & the 10F2xx user's guide it is all correct. So I ordered a whole tube of 10F2xx chips & have same problem. I also have two "Low pin count Demo boards" and they both do the same thing. If I put the sample 16F690 back in it works fine.
Here are my connections:
PicKit2-------------->10F206
(output conn)
1---------------->8
2---------------->2
3---------------->7
4---------------->5
5---------------->4