First of all thank you darvade. I have been going round and round all day with this issue. I then came across you post and bingo it works.
I do how ever have a question for all you pros.
In the updatded post from Hi Low tech is states this.
“By default, the ATtiny’s run at 1 MHz (the setting used by the unmodified “ATtiny45?, etc. board menu items). You need to do an extra step to configure the microcontroller to run at 8 MHz – necessary for use of the SoftwareSerial library. Once you have the microcontroller connected, select the appropriate item from the Boards menu (e.g. “ATtiny45 (8 MHz)”). Then, run the “Burn Bootloader” command from the Tools menu. This configures the fuse bits of the microcontroller so it runs at 8 MHz. Note that the fuse bits keep their value until you explicitly change them, so you’ll only need to do this step once for each microcontroller. (Note this doesn’t actually burn a bootloader onto the board; you’ll still need to upload new programs using an external programmer.)”
I could never get it to work. can anyone tell me what its all about.