yes, i was able to use the Arduino itself as an ISP.
here is the complete entry in my boards file
1. 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
5. this was the same on OSX Lion, Windows 7, Vista 64
hope that helps