@h4t
yes, i was able to use the Arduino itself as an ISP.
here is the complete entry in my boards file
sparky.name=Sparky
sparky.upload.protocol=stk500
sparky.upload.maximum_size=32256
sparky.upload.speed=115200
sparky.bootloader.low_fuses=0xff
sparky.bootloader.high_fuses=0xde
sparky.bootloader.extended_fuses=0x05
sparky.bootloader.path=optiboot
sparky.bootloader.file=optiboot_atmega328.hex
sparky.bootloader.unlock_bits=0x3F
sparky.bootloader.lock_bits=0x0F
sparky.build.mcu=m328au
sparky.build.f_cpu=16000000L
sparky.build.core=arduino
notes1. using an Arduino Uno with the Opti Boot bootloader.
2. successfully able to bootload the ATMEGA328-AU selecting the board above from the boards list
3. after the success of the bootloader, when i attempt to upload a sketch i get 'm328au' is not a recognized device
4. knowing the
bootloader was successful but
upload sketch failed i was able to
upload a sketch by changing the board to simply Arduino UNO (go figure)
5. this was the same on OSX Lion, Windows 7, Vista 64
hope that helps