Strange digital pin behaviour

My 168 provides plenty of current. In this video, the AVR is both sinking and sourcing current on digital IO pins (and there isn't any current limiting resistor) BareBones KIT LEDs

Are you sure of your resistor value (should be Red, Red, Brown)? Sometimes a red or orange band will look a lot like brown, and you can't trust whoever threw them in the bin/bag/whatever "for sure."