After I installed it and pressed burn bootloader in arduino IDE(note i didnt connect anything to the programmer)
it said that...
That is a normal response if you don't have anything connected to the programmer. It will probably work okay. You don't necessarily need to update the firmware on the programmer, unless you plan to program AVR chips that run with clocking below 1 MHz.
I have one of those USBasp V2.0 programmers, by LCsoft Studio. It uses an ATmega8A chip. I was able to upgrade the firmware to the latest 2011 version. Seems to be running fine and the slow clk option is also working correctly.
If you really need to update the firmware on the programmer then you will need another programmer to program it. Do you need more info?
What i meant was that arduino recognized it.
I know it is supposed to say that when nothing is connected.