I have been trying to wire a PIC18f4620 to a FTD1232 using the MLCR reset. Below is my circuit. When I hit the reset, the short causes the processor and the FTD to lose power and I am unable to program to it. I am certain that this button to reset is possible, but I am unsure where I am going wrong.
The "FTD1232" is actually an FTDIchip.com product such as FT232.
Also, it is possible that the reset button is actually wired (not like in the diagram but really on the board) to the wrong side of the resistor? In that case pressing the button would directly short the 5V supply to ground, which matches the symptoms you describe.