Hello everyone! I have just recently made a breadboard to program an atmega328 with a FTDI basic breakout from sparkfun. My problem is that I get the error
avrdude: stk500_recv(): programmer is not responding
when I upload the blink sketch to the breadboard. I think it is because the rx pin isn't blinking. Any help? 
You need to bootload the chip if it isn't already.
http://www.geocities.jp/arduino_diecimila/bootloader/index_en.html
If the chip has already been bootloaded, check your connections.
What schematic have you used for your breadboard? Have you used a 16MHz crystal?
Program up a chip in a regular arduino to blink an LED then transfer it to your bread board, does it work?
If so then you are ready to start looking at the FTDI basic breakout until then look for a problem with the breadboard circuit.
Are you connecting the RESET pin to the FTDI breakout?
Thanks for all the replies. I have connected the reset and know it works because pin 13 led blinks when I press the reset button. I have attached the fritzing file and I'm using a 16mhz crystal with 2 22pf caps in my circuit. I have programmed the chip in the Arduino, transferred to the breadboard, and the program works. 
The srangest thing is that the rx pin never blinks when I upload a sketch, but the led at pin 13 and the tx pin light up.
ATmega328 Dev Board.fz (233 KB)
Oh, I just remembered that I have a 5v FTDI basic breakout from sparkfun, so that might be the problem also.
I think it is because the rx pin isn't blinking.
Wrong way round thinking, it is not working because the rx LED is not blinking. It is not working and that is why the rx LED is not blinking.
The tx and rx LEDs on the FTDI basic breakout are not directly a function of the data on the serial lines. They are just GPIO from the FTDI chip and the driver in the PC is responsible for flashing them. Pin 13 should not be flashing during download.
So look to your connections. The TX from your breadboard chip is not getting through to the rx on your FTDI basic breakout.
Grumpy_Mike:
The tx and rx LEDs on the FTDI basic breakout are not directly a function of the data on the serial lines. They are just GPIO from the FTDI chip and the driver in the PC is responsible for flashing them. Pin 13 should not be flashing during download.
There's a microcontroller inside the FTDI chip that can be programmed to flash the LEDs. It is not really handled by the driver.
It is not really handled by the driver.
Please look at the FTDI data sheet, you will see that the LEDs are connected to GPIO.