Another bootloader @ 3.3v & internal 8MHz clock w/SD card...

(I have also tried to use the +5v output on the Arduino Duemilnove board to power the target board.. still no luck on burning a bootloader:

I get this message: avrdude: stk500_getsync(): not in sync: resp=0x15

What board selection did you use in the IDE just before you performed the burn bootloader option?

Lefty