Windows 7.
I've also tried cutting the Reset-EN track on the Uno - doesnt make any difference. Also tried the latest ArduinoISP code from github. Also managed to turn on verbose mode if this helps:
Binary sketch size: 1026 bytes (of a 30720 byte maximum)
C:\Electronics\arduino-1.0\hardware/tools/avr/bin/avrdude -CC:\Electronics\arduino-1.0\hardware/tools/avr/etc/avrdude.conf -v -v -v -v -patmega328p -cstk500v1 -P\.\COM3 -b19200 -Uflash:w:C:\Users\Greg\AppData\Local\Temp\build9174164316540479171.tmp\Blink.cpp.hex:i
avrdude: Version 5.11, compiled on Sep 2 2011 at 19:38:36
Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
Copyright (c) 2007-2009 Joerg Wunsch
System wide configuration file is "C:\Electronics\arduino-1.0\hardware/tools/avr/etc/avrdude.conf"
Using Port : \.\COM3
Using Programmer : stk500v1
Overriding Baud Rate : 19200
avrdude: Send: 0 [30] [20]
avrdude: Send: 0 [30] [20]
avrdude: Send: 0 [30] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]
AVR Part : ATMEGA328P
Chip Erase delay : 9000 us
PAGEL : PD7
BS2 : PC2
RESET disposition : dedicated
RETRY pulse : SCK
serial program mode : yes
parallel program mode : yes
Timeout : 200
StabDelay : 100
CmdexeDelay : 25
SyncLoops : 32
ByteDelay : 0
PollIndex : 3
PollValue : 0x53
Memory Detail :
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
eeprom 65 20 4 0 no 1024 4 0 3600 3600 0xff 0xff
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
flash 65 6 128 0 yes 32768 128 256 4500 4500 0xff 0xff
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
lfuse 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
hfuse 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
efuse 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
lock 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
calibration 0 0 0 0 no 1 0 0 0 0 0x00 0x00
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
signature 0 0 0 0 no 3 0 0 0 0 0x00 0x00
Programmer Type : STK500
Description : Atmel STK500 Version 1.x firmware
avrdude: Send: A [41] . [80] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [02]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [81] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [01]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [82] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [12]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [98] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
Hardware Version: 2
Firmware Version: 1.18
Topcard : Unknown
avrdude: Send: A [41] . [84] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [85] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [86] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [87] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [89] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
Vtarget : 0.0 V
Varef : 0.0 V
Oscillator : Off
SCK period : 0.1 us
avrdude: Send: A [41] . [81] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [01]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [82] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [12]
avrdude: Recv: . [10]
avrdude: Send: B [42] . [86] . [00] . [00] . [01] . [01] . [01] . [01] . [03] . [ff] . [ff] . [ff] . [ff] . [00] . [80] . [04] . [00] . [00] . [00] . [80] . [00] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]
avrdude: Send: E [45] . [05] . [04] . [d7] . [c2] . [00] [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]
avrdude: Send: P [50] [20]
avrdude: Recv:
avrdude: stk500_program_enable(): protocol error, expect=0x14, resp=0x50
avrdude: initialization failed, rc=-1
Double check connections and try again, or use -F to override
this check.
avrdude: Send: Q [51] [20]
avrdude: Recv:
avrdude: stk500_disable(): protocol error, expect=0x14, resp=0x51
avrdude done. Thank you.