Sounds like, since you're using the internal osc, that the PIC gets started. Once started, you can't burn to it anymore. Not sure how advanced the MBHP burner was, but it's based on JDM burner as far as I can remember.
The problem with the JDM burners is that it supplies a voltage to the PIC, which starts up the PIC software. There needs to be a small delay in applying a certain voltage, so that the PIC doesn't start up but does get into programming mode.
Try a different burner :) I got myself this one through ebay 2 years ago: Enhanced JDM PIC programmer
A couple of years ago I found a webpage with a mod on the JDM burner, to accomplish exactly that. Unfortunately, the page is dead. Managed to salvage things through archive.org and have it hosted here right now:
http://caveymon.com/~cavey/jdm/
Cheers.