I have arduino 1.0.1 and I followed each and every instruction on this website:
When I try to upload the blink sketch with pin 0 instead of 13 it uploads and then writes:
avrdude: usbdev_open(): did not find any USB device "usb"
On the boards menu I have selected: ATtiny85 with internal 1Mhz clock
a minute before hand I uploaded the Arduino as ISP to my arduino UNO.
atmega328 to attiny85
all the connections are made correctly
using a 10uF cap between ground and RST