Burning atmega328 -PU using arduino as ISP

I have a stock arduino (with at atmegap-PU), and I would like to burn an atmega328-pu using the arduino as isp. This is my setup(instead of the atmega168, I have atmega328):

How do I create a new board named atmega328 , that allows me to do so ?

Create new board in board.txt file with ATmega328 based on Diecimila or UNO and add this MCU into avrdude.conf based on ATmega328P. It has just different signature. ATmega328 is missing there for unknown reason for me. It could work if i didn't forgot something.

Also, you forgot the 0.1uf decoupling caps between power and ground right next to chip. Those are not optional.

Good point. I have experience that it works without capacitors but they should be surely there on both sides to avoid a problems. Somebody could update this picture.