One of several things...
1. You did not get the chip from me...or (he he he)
2. Your pin2 LPC isn't making proper contact because of some reason (broken trace, grounding somewhere)
3. You have a newer box (1.4) and you are trying to put an older chip (1.3 or earlier) in.
4. You have a 1.3 box, and are putting in a v1.0 of the Chameleon.
JD