Same thing. Program upload. Runs fine.. Just no interrupts. I have the new Duemilanove if that matters.
=> [avr-gcc] ledarray-v2.elf
avr-gcc -mmcu=atmega168 -funsigned-char -funsigned-bitfields -fpack-struct -fshort-enums -I. -gstabs -DF_CPU=16000000 -Os -Wall -Wstrict-prototypes -std=gnu99 -I/Applications/Electronics/arduino-0012/hardware/cores/arduino -o ledarray-v2.elf ledarray-v2.c -L. core.a -lm
=> [avr-objcopy] ledarray-v2.hex
avr-objcopy -O ihex -R .eeprom ledarray-v2.elf ledarray-v2.hex
=> [avrdude] ledarray-v2.hex
avrdude -p atmega168 -P /dev/tty.usbserial-A60061eR -C /Applications/Electronics/arduino-0012/hardware/tools/avr/etc/avrdude.conf -c stk500v1 -b 19200 -F -u -U flash:w:ledarray-v2.hex
avrdude: AVR device initialized and ready to accept instructions
Reading | ################################################## | 100% 0.05s
avrdude: Device signature = 0x000000
avrdude: Yikes! Invalid device signature.
avrdude: Expected signature for ATMEGA168 is 1E 94 06
avrdude: NOTE: FLASH memory has been specified, an erase cycle will be performed
To disable this feature, specify the -D option.
avrdude: erasing chip
avrdude: reading input file "ledarray-v2.hex"
avrdude: input file ledarray-v2.hex auto detected as Intel Hex
avrdude: writing flash (3164 bytes):
Writing | ################################################## | 100% 2.59s
avrdude: 3164 bytes of flash written
avrdude: verifying flash memory against ledarray-v2.hex:
avrdude: load data flash data from input file ledarray-v2.hex:
avrdude: input file ledarray-v2.hex auto detected as Intel Hex
avrdude: input file ledarray-v2.hex contains 3164 bytes
avrdude: reading on-chip flash data:
Reading | ################################################## | 100% 2.38s
avrdude: verifying ...
avrdude: 3164 bytes of flash verified
avrdude done. Thank you.