Sharp IR Sensor with PICAXE-40x1 Oddity

I am using both a PICAXE-40x1 and a Sharp IR proximity sensor.

My issue is: when I download my code to the PICAXE chip the program editor throws an error saying "cable unplugged, floating pin, etc." When I pull the ground wire on the sensor, the code will download. Clearly an issue with the sensor or how I have it wired. Per the sensor schematic, I have power, ground and signla all wired in.

Has anyone run into anything similar?

Thanks.

Yep

Yeah vcc is tied to 5vdc, gnd to 0vdc, and vo to adc7.

What could I possibly be doing wrong?