avrdude: stk500_recv(): programmer is not responding

Trying to upload the Blink example to an Arduino Duemilonave (ATMega168) and have the following message:

avrdude: stk500_recv(): programmer is not responding
processing.app.debug.RunnerException
at cc.arduino.packages.uploaders.SerialUploader.uploadUsingPreferences(SerialUploader.java:125)
at processing.app.Sketch.upload(Sketch.java:1719)
at processing.app.Sketch.exportApplet(Sketch.java:1625)
at processing.app.Sketch.exportApplet(Sketch.java:1597)
at processing.app.Editor$DefaultExportHandler.run(Editor.java:2397)
at java.lang.Thread.run(Thread.java:695)
Caused by: processing.app.debug.RunnerException: Problem uploading to board. See http://www.arduino.cc/en/Guide/Troubleshooting#upload for suggestions.
at cc.arduino.packages.Uploader.executeUploadCommand(Uploader.java:111)
at cc.arduino.packages.uploaders.SerialUploader.uploadUsingPreferences(SerialUploader.java:123)
... 5 more

I am using:
Mac OS X 10.9.2 (Intel Core i5)
Arduino IDE 1.5.6-r2

I haven't programmed to this Arduino in quiet some time but had no issues before. Not sure why it's not working. I read the troubleshooting guide as well but nothing seemed to work. I also installed Arduino 1.0.5 but that also didn't help.

Appreciate your help and suggestions.