I was wondering if you have a spare pcb for that programmer you built?
Only thing that is missing for what I have in mind is a zif socket to program bare chips

I also wonder - if there is no sd card - can you upload a sketch like you do with the arduino/avrdude ? Like if you want to test and find out you need to change things, do you have to compile and put the new hex file on the sd card first?
If you plan on adding an lcd - consider using a touch screen - that would make an awesome interface, but would probably force you to use a mega (for extra pins and memory)
update: still no joy - but I have to admit I got a bit distracted and didn't spend much time on it these last days
I am uncertain about a reset line on the programmer though - from what I learnt so far I don't need to reset the programmer when the serial communication starts
using the uno as a programmer I disable the reset signal using the cap, right?
and the arduinoISP sketch resets the target when it needs to, right?
Just double checking the obvious things - correct me if i'm wrong
so far I think the serial connection is not working right - but I'm still not sure. maybe the arduino/avrdude doesnt like the usb to serial pl2303? I'm going to try and verify that when I find some more time - use the uno but connect the max232 to the tx/rx pins and see if that works