I'm using a Duemilanove ATmega328 in ArchLinux.
When I upload the blink program, it goes through without any errors. However, the LED will either stay on, or flash on and turn off when the HIGH delay is fairly low (testing at 500 and 100).
The TX and RX flash as usual, and using the reset button doesn't seem to fix the problem.
EDIT: to clarify, normally the LED will stay on, unless the HIGH delay is little.