spycatcher2k:
Have you selected nano & 328p old bootloader from the tools menu?
I would try, but it doesn't appear to select from 328 or 328oldbootloader.
I read many online forums, and I've seen that people mention to select the correct board, processor and port, but I tried now a few computers with different IDE versions and the only choice I have is 328 or 168 (2 choices) - never seen the oldbootloader to be able to select.
I would suspect the board is somehow broken, if only it doesn't work on the online creator, but it does with no problems.
Finally, I have checked the online creator and there is ATMmega328old, to select from (together with ATMmega168 and ATMmega328). Only on the online creator, never on the installed IDE.
Cheers.