I bought a ATMEGA328-PU-ND chip from Digi-Key and made a breadboard circuit according to this webpage:(
http://arduino.cc/en/Main/Standalone).
I am using this chinese made usbasp programmer that I bought from ebay. It is a supposed to be similar to Protostack's usbasp isp programmer.

When I followed the instructions to bootload using the Arduino v1.0, I get this error message:
avrdude: warning: cannot set sck period. please check for usbasp firmware update.
avrdude: Expected signature for ATMEGA328P is 1E 95 0F
Double check chip, or use -F to override this check.Can anyone tell me what I'm doing wrong?
The settings I used were:
Tools>Board>ATMega32 on a Breadboard (8Mhz internal clock)
Tools>Programmer>Usbasp