Error when uploading

Hi everyone!

I just got my starterkit with arduino UNO and went right to try it out.
I found the "Blink" example and loaded it up. I compiled it... everything seemed fine.
When I upload the sketch the L led blinks really fast a few times, then the RX led blinks twice, L led blinks once, RX led blinks once, L led blinks a few times, TX led blinks once and then the L led goes back to continiously blinking and the following error message appeares:

avrdude: stk500_getsync(): not in sync: resp=0x86

I have browsed around the web trubleshooting but I have come up empty.
Here is what I have tried so far:

Checked that I have selected the right COM port (currently using COM4).
Tried updating the arduino with the included drivers.
Reebooting my pc.
Checked that the bootloader is fine, the "L" led is blinking continiously at half second intervals.
Disconnected all wires exept the USB.
Hitting reset on the board.

I have run out of ideas on what to try.
Has anyone experienced this before or have any helpful advice?

Thank you in advance
-Fredrik

What code are you uploading?

Actually resp=0x86 is unusual. I don't have any answers but I'd probably pull the '328 out and put it back in again to see if that helps!

MattRM:
What code are you uploading?

The premade example "Blink"

dannable:
Actually resp=0x86 is unusual. I don't have any answers but I'd probably pull the '328 out and put it back in again to see if that helps!

'328?

Sorry Im completely new to Arduino but hoping to learn lots.

The main IC on the board. ATMega328P-PU, or '328 for short. Unless it's a surface mount one. Don't pull that off!