A quote from the 18F1320s datasheet:
The Timer1 oscillator shares the T1OSI
and T1OSO pins with the PGD and PGC
pins used for programming and
debugging.
When using the Timer1 oscillator, In-Circuit
Serial Programming (ICSP) may not
function correctly (high voltage or low
voltage), or the In-Circuit Debugger (ICD)
may not communicate with the controller.
As a result of using either ICSP or ICD, the
Timer1 crystal may be damaged.
If ICSP or ICD operations are required, the
crystal should be disconnected from the
circuit (disconnect either lead), or installed
after programming. The oscillator loading
capacitors may remain in-circuit during
ICSP or ICD operation.