Be prepared for it not to work with the Arduino IDE using the stock IDE and stock avrdude.
Here is the bug about it:
http://code.google.com/p/arduino/issues/detail?id=650
Its a complex interaction of multiple components that creates the problem
but ultimately it is an avrdude issue.
(See the issue above and the link to the Savannah bug report for the gory details
and how to fix it or work around it)
Fixing it in avrdude is the ideal solution, but the problem can also be avoided
by changing the way the IDE uses avrdude to burn images.
Here is a project I did to put the dragon in a case:
--- bill