no, these are the flags for various hardware options (e.g. oscillator selection, brownout voltage, code protection). These two words should never be changed.
The ID field is a number with 16 digits (8 bytes). It is “all-1” after erase, and if it won’t be programmed, you will notice exactly the described effect.
I just have downloaded WinPIC and searched for a possibility to change the ID field. It seems that the GUI doesn’t allow this. But under “Device->Program ID locations” you can program it, propably with the values which are embedded in the .hex file (and in this file I’ve written the all-zero header)
So, just try this function, hope that it helps.
If not, the “TEST SW2” workaround of the MIDI troubleshooting page could help