CrossRoads:
Does it matter which '168?
168, 168A, 168P, 168PA
Which is "Arduino Diecimila or Duemilanove w/ ATmega168" expecting?''
In boards.txt it's designated "atmega168" so I expect it will be looking for the ATmega168. To use the newer 168A or 168PA you probably need to modify boards.txt to get it to write the bootloader. After you do that, the bootloader will impersonate the ATmega168 so you have to change boards.txt BACK to do uploading.