Cant program bootloader

I am trying to burn the arduino bootloader into an Atmega328p using the Arduino as ISP method

The boards I'm using is are SB Freeduinos (diecimila derivatives)

When trying to burn the arduino bootloader i get this error while using the arduino as isp method.

avrdude: stk500_2_ReceiveMessage(): timeout

I have the two boards connected as shown in the first example here:

The code that has been loaded into the Arduino acting as the programmer was obtained here:
http://code.google.com/p/mega-isp/
Is this the wrong code?

Is there something I'm missing?