It would be easyer to troubleshoot if you connect the 3 LED's mentioned in the sketch
Put an LED (with resistor) on the following pins:
9: Heartbeat - shows the programmer is running
8: Error - Lights up if something goes wrong (use red if that makes sense)
7: Programming - In communication with the slave
And you could try this core:
http://code.google.com/p/arduino-tiny/downloads/list