Setting up a really bare bones arduino

Barebone is simply not for those without sufficient experience with the non-bare product(s).

Yeah, it's a bit frustrating to watch all of the people having problems, without having much to say that will help. This is what using microcontrollers was like without Arduino (or the equivalents like Basic Stamps.) Avoiding this sort of thing is why those are such wonderful products!

I used a redboard bootloader.

So... I give up. What's a "redboard bootloader"? The sparkfun Redboard kit(s), which I assume is what you're talking about, says it uses an ATmega328 with the Optiboot bootloader. How did you program the bootloader? If you're not seeing ANY activity on pin13, then the bootloader burn was not successful. (It should blink rapidly several times after reset.) Optiboot, together with the normal ways to burn it, does need the crystal. The instructable you reference talks about using the Lilypad bootloader that uses the internal oscillator. But there were several versions of the Lilypad, and the newer ones use an external crystal (an 8MHz one, to be compatible with the lower supply voltages.) What are you doing for reset? The optiboot bootload process requires an external reset; mere powerup won't do the right things. You said you progammed blink. How? What do you have the "Board" set to for loading the sketch? What was it set to for burning the bootloader? What are you using for the serial connection?

Or did you mean that you programmed the chip when it was in your redboard, and have taken it out and are trying to get it (the already loaded sketch) running on the protoboard? That should work, but it will require the crystal as well.