Yes, did check the troubleshooting guide. Running WinXp Pro with Duemilanove clone. PCB is new, looks to be of good quality and has "QC" sticker on it.
Duemilanove/w ATMega328 selected and serial port 11 selected. Using known working USB cable. USB driver installed OK on serial port 11 but Windows Device Manager calls it "USB Serial Port (COM11)", not "Arduino UNO (COM11)" as stated in "Getting Started" instruction.
When USB cable is plugged into Duemilanove board a blue LED lights near the reset button and yellow LED labled "L" starts blinking randomly. Pressing RESET button does not alter anything.
Load and compile the Blink sample code OK and then try downloading the code to Duemilanove board. The Yellow LED stops blinky randomly, the red Rx LED and green Tx lights blink for a few seconds and guess what.... The yellow LED is now blinking once per second as it should. It is now working and I don't know what was different from previous attemps.
I'll start playing with the board now - thanks.