I’ve applied as it is, and found it undersensitive also I was too angry to try and tweak it. As I type I prepare myself to try and implement an hardware solution… fetches hammer
I’m not sure what the Tiny13 can do but my PICAXE 08M2 is able to use the sensor in a digital fashion. The whole circuit uses 3.3V and with the IR LED consuming 50mA @1.25V it will trigger a digital low when my finger gets around 12mm away. I use the same circuit that kariloy posted. For me R1 is 47ohm and R2 is 10K.