Can i use a USB-to-RS232 Serial converter to connect to Arduino ?

I wanted some clarity on the combination because what I found was that 1.0.6 does not like the 328 used in conjunction with an Uno board type selection. The result is a not in sync error. Later version IDE’s do not do this, they will fail and report the invalid chip signature.

In this situation, 1.0.6 will download if the Duemilanove board type is selected along with the 328 chip type which needs to see a chip signature of 1E 95 14.

This does not appear to agree with you’ve said so I’m now questioning the chip you’re calling a 328. Do you know what the chip signature is as returned by avrdude? Or, your board identifier tool? The picture you posted in #11 is not a 328, it is clearly a 328P as the signature is 1E 95 05.