Thank you for the reply. Well, I have two boards which do communicate to the PC via USB but have failed digital/analog points. I am able to upload sketches to both which is how I ran that test sketch on the test circuit. I was also able to use one board as a programmer to the other (I needed to add a cap to the the programmer board - grnd to reset). That ran successfully, but did not change the state of the board. I hoped to get my new Atmega328s today, but they aren't scheduled for delivery until tomorrow; wishful thinking on my part for today.
Thank you for the link too. I will use it to further test the chips I think are bad. Just to be sure, I intend to use http://arduino.cc/en/Tutorial/ArduinoISP on my new chips. Is your post suggesting that I would better test my failed chip(s) with your sketch or do I need to use your sketch to properly burn the new chips as well? Thanks again for your response.