k_xx:
Now, I think I might have damaged the chip - when I first put my 328 into the UNO, I placed the wrong way (e.g. pin 1 in pin 15's place) and flashed a few programs - do you think this might have damaged the chip? Do I need a new Arduino now?
Putting the chip in backwards will most likely have destroyed it.
Why was it out in the first place?