That's what it seems like. Almost as if the settings are pointing to the Atmega328 instead of Atmega162. I know in my board selection it is the Atmega162 that I am selecting. Here is a part of my "boards.txt" file. Do you see anything wrong with it? I added to the name to give it a more detailed description but that is all I changed from the original.
atmega162.name=ATmega162 on a breadboard (16Mhz external clock)
I noticed that nothing is defined for the Atmega162 in the "arduino.h" file located in the core directory. Could this be the root of my problems? Perhaps you can paste what should be there, here.