I think the problem is with the Reset, you cannot always connect the reset to ground via pull-down. You need to put in a reset switch. Since the uC has its reset pin low when power-up, it will not be in a good known state and so it will not function properly. After power-up, you need to apply reset by driving the reset pin high for some time and then de-assert it by driving it low. This will put all the memories, statemachines, and logic in the uC to the IDLE state and the uC will start up correctly.
I suggest you try reseting the uC after you power-up the ckt and then check if it works.