Thanks Lefty. Gee the tutorage you guys are providing me with must be doing something 8)
Not to drag this on, but did you try just a loop-back on the FTDI cable? All you need is to jumper the White-Rx to Green-Tx pins on the cable, nothing else connected. Then use a serial monitor program to the COM port. Then it should echo back whatever you type on the keyboard. This would at least show if the FTDI cable is actually working or not.
hiduino - I bridged Tx and Rx on the cable > plugged it into computer > opened IDE and selected correct port > opened serial monitor > typed message > enter > message showed on serial monitor
No sketch, just open up the serial monitor from the IDE. Or use some other serial console software.
hiduino - see reply #22 (I edited before I realised you posted a reply) 8)
That's a positive sign that the FTDI cable appears to be working correctly then.
So the problem of programming the 328 is elsewhere. Which leads back to how are you clocking the 328? What fuse settings were used, internal or external? If you used the Uno settings then it is probably looking for an external crystal on pins 9 and 10.
Still need to figure out what the pesky "RTX" pin is doing.
Pedro, I have a couple of different pcbs I worked up myself, and use the FTDI cables+Friend
with. Too much trouble to mess with USB chips on every one of my own boards, so I have one
FTDI cable and one FTDI Friend used for many different projects. Plug in when needed. I use
RS232 in essentially every program, so the FTDI comes in real handy. It kind of pays to buy
one you know will work without hassles if you're only buying one of each.
I always use bootloader chips and FTDI for uploading, but could use the ICSP header or SPI pins
if I had an AVR programmer - one is on order now. I have both 328 and 1284 boards, and the
same FTDI cables work with all of them, and I didn't have to solder nasty smt USB chips on
any of them.
"I didn't have to solder nasty smt USB chips on any of them."
Hear hear! I'm all for that too.
If I need USB/Serial on board now I use one of these
http://www.mouser.com/Search/include/LargeProductImage.aspx?path=mikroelektronika/lrg/usb_uart.jpg
I did pick up some of these to glom onto a board also if desperate (or cheap) with Lefty's DTR mod for reset with downloads.

hiduino - "you are the man"
hiduino:
Where is your crystal? I don't see one in your schematic. It won't work unless you set your fuses for internal clocking. Otherwise you will need to add an external crystal(w/caps) or a resonator.
I fitted a resonator to the circuit and now it works like a charm 8) When I followed Nicks tutorial I obviously misunderstood some aspect of it. Now that I think about it it all makes sense. Hindsight is a wonderful thing isn't it. I initially burnt the Uno bootloader to the chip so when I tried to upload some code with the FTDI cable it was expecting to be using an external 16Mhz crystal, which wasn't there. I will have to apologise to the Ebay vendor for telling him he sold me a crappy cable...opps 8) Thank you to all you guys that came up with so many helpful suggestions, I have certainly learned quite a bit from this project.
Thanks to the help of you knowledgeable guys, now that I sorted out my FTDI cable problem, I made up this little board this afternoon. Hey, I won't put anybody out of business, but it works
8) Thanks again chaps.
Pete, (Pedro147), If I may call you that, are a wonder to read. It''s really interesting to watch you with the help of others work your way through each problem, I don't think I've ever advised you on anythins as my specialty is electronics and not so much code, Your questions never fail to "Learn Me Something New"
Keep it UP Bro... and be PROUD,
You are doing well.
Bob
Well, thank you so much Bob. Your words of encouragement mean a lot to me, coming from a forum member of such obvious high standing. You have a great day because you have definitely brightened mine up. [ and you may call me Pete 8) ]

