Thank you much, Jack. It looks good. It looks like the custom AVR core works with the ZAP 2.0.6 IDE but not with the Arduino 0018 IDE. This is not a problem for me since I'm using the ZAP IDE and it may just be a mistake I made but I thought I'd mention it. The error the Arduino IDE throws is "the selected serial port does not exist or your board is not connected". Note: the serial monitor is responsive with a pre-loaded sketch.
I have been able to find vhdl projects for an AVR8 core for both the Papilio One 250K and 500K but no such project for the Papilio Pro. I also found a .ucf file for the Papilio Pro. Does anyone know where I can find a Papilio Pro Xilinx project that creates an AVR8 core? It would be a great help!