Fixing USBasp based on ATmega8

AlxDroidDev:
Is there anyway I can use my UNO do flash my USBasp with the newest firmware from USBasp - USB programmer for Atmel AVR controllers - fischl.de using my UNO R3 as the ISP ? Will that solve my problem?

Yes, updating the firmware will solve your problem.
Connect the Arduino to the header pins on the USBasp as you would when using the Arduino as an ISP http://arduino.cc/en/Tutorial/ArduinoISP
13 -> SCK
12 -> MISO
11 -> MOSI
10 -> RST/Reset
You also have to short together one of the jumpers at the top of the USBasp to put it into self-programming mode.
Upload the latest firmware .hex file using AVRDUDE.