Thanks for all the responses, it's given me a good idea of where to go moving forwards, and that's incremental building of the boards for prototype then try and increase the accuracy of my chip placement with a manual pick n place. My main issue being my hands are not steady enough to manage the accuracy of placement even with a vacuum tool. Thanks again, all very useful and makes me think.
Charles CreationsPackage SelectionI'm limited to board size, so am unable to use 1.27mm pitch packages. I've been using 0.65mm packages as these are the largest pitch I can physically fit on the board. These are also the ones I am having issues with. Both memory and PIC IC's are 0.8mm AFAIK, and I don't believe I have had problems with either of these. All caps and resistors are 0603 and I havent had any issues with them either. So I dont believe I can do much here.
Board DenistyPretty dense -- it's not caused an issue that I can tell, though. Placing the parts doesn't cause an issue.
Board QualityI'm very happy actually -- I'm using 8mil tracks with 8mil space and 20/12mil vias, so reasonably small. It's being made by TinySine, so one of the generic Chinese Seeed Studio type places.
You're absolutely right I need to do more checking before powering up than visual checks, I need to get some small probes for my meter as the current ones are just too large to be able to probe anything at this pitch. Although my eventual goal is to make quite a few of these, so figuring out how not to require so much testing would be good! Although I may look into outsourcing production then... I have no experience of this though. The Chinese PCB fabs usually offer a complete board service, but I have no idea how good this would be -- they are pretty cheap. And I've been on the lookout for a reasonable lab supply with current limit -- my hacked PC PSU isnt ideal.
nctnicoSolderingI have tried soldering small pitch soics. Nightmare. I will never try that again.

On this board it's also too dense to do this.
sleemanjBoard FaultYeah, I'm sure the board is fine. This second prototype is an iteration on the first -- the first worked after I'd sorted out the initial chip cooking problems (apart from the actual flaws in the design which lead to the 2nd board!). No home etch, all professionally done.
I am going to take your approach of incremental construction for my next attempt though. I have no problem individually reflowing components, as this is what I ended up doing for the first board in the end more or less. I built it up fully, then had to more or less completely disassemble and re-assemble it!
But I keep coming back in my head to the fact I want to produce a few of these... perhaps my manual pick and place will sort out accuracy issues and make this possible. We'll see...
mjkuwpCopper Pour ShortsI'm with you there.

I've done a board before where I had that exact issue -- solder mask exposing the edges of the pour and causing shorts. Nasty. I've avoided that this time by having no top pour and routing power and ground on the bottom. It's only a slow board, so broken ground planes are not much of a worry.
T3sl4co1lICSPI've setup ICSP as a 6 pin header. For proto-work it's a soldered header, for production programming it will be more like a pogo setup. MCLR is hooked up appropriately with a resistor and the previous board worked fine once the bugs were ironed out.
Although one thing which I've realised which may be an issue while in the car this morning is floating outputs.
The PIC's normal state will be high impedance on all pins before programming, I would expect (I haven't verified, I will do later!). Several of the chips are capable of driving the same output lines, however their CE/OE will be floating. So while in an unprogrammed state I assume I may / will have multiple bus drivers. I'm not sure if this would explain my chip overheating issue? It's only been one chip overheating both times so far... would two chips driving the bus potentially cause this? Or is only a short to Vcc going to cause this? I wouldnt think these chips could source enough current to cause them to cook on two chips driving the same lines.
But certainly one thing to consider is pulling the CE's high on all chips with resistors if using ICSP. Previously I've programmed out of circuit and dropped the chip in, so ICSP on a fresh board is a bit new to me.
rx8pilotVacuum ToolI've actually made a vacuum pickup tool out of an aquarium pump with a foot pedal to operate. This has been part of my pick and place plan -- I agree tweezers are not great from dropping chips precisely in place. Plus my hands are not too steady (which was the whole reason behind the pick and place).

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Your post has really made me come to the conclusion accurate placement without messing up the solder islands is the way to go for getting thins working properly. As much as I like to think the solder will flow away from the mask and toward pads, with the tiny gaps you get between legs, solder bridges are inevitable if solder is between the legs given the hundreds of legs on the board.