As expected,adding a 0.1uF bypass caps from Vusb to ground solved the problem. I had successful communications with a crappy thin 8' cable.
I don't know how I skipped the cap on the board. It's especially bad - I should know better since I received a Microchip demo board missing the Vusb cap and I had to install one to get the board to work.
Now to apologize to my client who had a lot of trouble making this circuit work with different computers. I don't think all of his troubles were caused by this but it certainly added to his frustrations!