Arduino Uno R3 SMD as ISP

I bought a couple ATMEGA 328P-PU chips I intended on programming with my Arduino UNO. I don't want to upload a bootloader to either of them as I need the extra memory. I wired one up on a breadboard as the tutorials showed and I can't get the UNO to upload the simple "blink" sketch to the 328P-PU chip. I get "not in syc" and "Invalid device" errors. Is the SMD UNO not capable of being an ISP programmer?

I'm running Windows 8.1 Pro and Arduino IDE 1.5.6-R2.

Use Nick Gammon's sketch to upload the bootloader to start to get the fuses set for 16 MHz external clock and not divide by 8 operation. http://www.gammon.com.au/forum/?id=11635

I uploaded Gammon's ATMEGA Board Programmer sketch to my UNO and then tried to burn the arduino bootloader to the ATMEGA 328P-PU and it spits back the same errors. "avrdude not it sync"