Unable to use ICD3 with CCS C Compiler
It looks as if you need to download a software interface module from CCS.

From CCS FAQ FAQ ICD3

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How can I use MPLAB® ICD 2, MPLAB ® ICD 3 and MPLAB® Real Ice™ with CCS Compiler?

MPLAB® ICD 2, MPLAB® ICD 3 and MPLAB® REAL ICE™ Support

How MPLAB® ICD 2, MPLAB® ICD 3 and MPLAB® REAL ICE™ works with our Compiler: Microchip's MPLAB® ICD 2, MPLAB® ICD 3 and MPLAB® REAL ICE™ can now be integrated with the CCS IDE Compiler. In the past, our IDE Compilers (PCW, PCWH, PCWHD and PCDIDE) only supported the ICD-U40 or ICD-S40 in-circuit debugger/programmer, but now users can seamlessly utilize the CCS windows environment with the MPLAB® ICD 2, MPLAB® ICD 3 and MPLAB® REAL ICE™. All CCS Command-Line Compilers (PCB, PCM, PCH and PCD) can already be integrated with MPLAB® ICD 2, MPLAB® ICD 3 and MPLAB® REAL ICE™.

CCS IDE Compiler and MPLAB® ICD 2, MPLAB® ICD 3 or MPLAB® REAL ICE™ Integration:

You will need version 4.064 or higher of the CCS IDE Compiler (PCW, PCWH, PCDIDE or PCWHD)
You will also need to download the MPLAB® ICD 2, MPLAB® ICD 3 and MPLAB® REAL ICE™ interface module from the CCS Downloads Page. Note: If you do not have MPLAB® already installed, you will need to so by visiting www.microchip.com.
The debug environment is built-in to the C Aware Real-Time Debugger, once the hardware is connected to your PC and select the programmer/debugger you would like to use from the "Debug Configure" option on the IDE menu tab.

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