Bootloader to ATmega 328P

The PC should recognize the MKii being plugged in.
If not, do the New Hardware install thing or Linux equivlent and use the drivers provided with Arduino, my path is:
c:\arduino-1.0.1\hardware\tools\avr\utils\libusb\bin
(might have the slashes backwards there)

You do have avrdude installed if you have the IDE running.
Yes, can burn & re-burn to your hearts content, up to 10,000 times or maybe 100,000 times, I don't remember the number in the datasheet.

I'd start with the MKii driver.