Programming for a Bread Board

Bruce,

Can I use the Arduino Duemilanove to program & test the chip before moving it to my bread board

Yes you can. It doesn't need the environment once the sketch is loaded.

You can make your own breadboard - i.e.
http://art364.pbwiki.com/Standalone+Arduino

Or get something like this "really bare bones board"
http://www.moderndevice.com/RBBB_revB.shtml/

Enjoy!
[edit]Changed link to "really bare bones board"[/edit]