Burning Bootloader to 168 avrisp mk2 and OSX

Well, it looks like the fuses got written successfully. Does it do anything after that?

If not, you could try running the next command manually:

bin/avrdude -p m168 -b 115200 -P usb -c avrispmkII -D -U flash:w:ATmegaBOOT_168.hex:i