So I went ahead and replaced R1 with the 1.2k Ohm resistor and put in a 16.384 MHz crystal and cgminer gives the error:
[2013-08-16 00:41:09] Icarus Detect: Test failed at /dev/ttyUSB2: get 00000000,
should: 000187a2
Any ideas? I'm not the best solderer but it looks like I have everything ok. Also tried flipping the oscillator in case that was it but same thing.
How are you now powering the usb miner? I believe that using a 16mhz crystal will require more power, hence you not being able to use it in a usb port anymore. You will have to hook it up (via the pads on the end of the miner board) to a pc power supply (or similar) equivalent that has a proper 5V connection with a decent amount of amps.