OK,
I found my issue with the Bootloading part.
There is an error in the picture in the instructions at:
http://itp.nyu.edu/physcomp/uploads/arduinobload_wires.jpg
If you look closely at this picture, it shows the MOSI from the Breakout Board going to Pin 16 of the Atmega. THIS SHOULD BE GOING TO Pin 17 instead.
Now, with..
avrdude -c usbtiny -B 32 -pm328p -U flash:w:optiboot_atmega328.hex
I get the following result.
C:\>avrdude -c usbtiny -B 32 -pm328p -U flash:w:optiboot_atmega328.hex
avrdude: AVR device initialized and ready to accept instructions
Reading | ################################################## | 100% 0.05s
avrdude: Device signature = 0x1e950f
avrdude: NOTE: FLASH memory has been specified, an erase cycle will be performed
To disable this feature, specify the -D option.
avrdude: erasing chip
avrdude: reading input file "optiboot_atmega328.hex"
avrdude: input file optiboot_atmega328.hex auto detected as Intel Hex
avrdude: writing flash (32768 bytes):
Writing | ################################################## | 100% 45.89s
avrdude: 32768 bytes of flash written
avrdude: verifying flash memory against optiboot_atmega328.hex:
avrdude: load data flash data from input file optiboot_atmega328.hex:
avrdude: input file optiboot_atmega328.hex auto detected as Intel Hex
avrdude: input file optiboot_atmega328.hex contains 32768 bytes
avrdude: reading on-chip flash data:
Reading | ################################################## | 100% 43.57s
avrdude: verifying ...
avrdude: 32768 bytes of flash verified
avrdude: safemode: Fuses OK
avrdude done. Thank you.
However, I am still not able to load a sketch to the chip using ArduinoIDE 1.0
I get the following....
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:\Program Files (x86)\arduino-1.0\hardware/tools/avr/etc/avrdude.conf"
Using Port : \\.\COM4
Using Programmer : arduino
Overriding Baud Rate : 19200
avrdude: Send: 0 [30] [20]
avrdude: Send: 0 [30] [20]
avrdude: Send: 0 [30] [20]
avrdude: Recv:
avrdude: stk500_getsync(): not in sync: resp=0x00
avrdude done. Thank you.
A little progress, but no sketches yet. Any ideas?
I can try uploading sketches through avrdude maybe.