Guidance on burning Bootloader to Arduino Ethernet

What am I doing?:
I am attempting to burn a bootloader onto an Arduino Ethernet using another Arduino as a software ISP (Arduino as ISP). So:
Board to be programmed: Arduino Ethernet
Board for Arduino as ISP: Arduino Duemilanove clone, Linksprite Diamondback

Why?:
I would like to remotely upload sketches via TFTP to the Arduino Ethernet. Ultimately would like to follow this process: https://playground.arduino.cc/Code/TFTPBootloader1

What is wrong?:
As a preliminary test to make sure I can do this correctly, I am attempting to burn the bootloader through the Arduino IDE, using this walkthrough: https://www.arduino.cc/en/Tutorial/ArduinoISP
When attempting to finally program the Arduino Ethernet, I receive the following error:

avrdude: Version 6.3, compiled on Sep 12 2016 at 17:24:16
         Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
         Copyright (c) 2007-2014 Joerg Wunsch

         System wide configuration file is "C:\Program Files (x86)\Arduino160\hardware\tools\avr/etc/avrdude.conf"

         Using Port                    : COM3
         Using Programmer              : stk500v1
         Overriding Baud Rate          : 19200
         AVR Part                      : ATmega328
         Chip Erase delay              : 9000 us
         PAGEL                         : PD7
         BS2                           : PC2
         RESET disposition             : dedicated
         RETRY pulse                   : SCK
         serial program mode           : yes
         parallel program mode         : yes
         Timeout                       : 200
         StabDelay                     : 100
         CmdexeDelay                   : 25
         SyncLoops                     : 32
         ByteDelay                     : 0
         PollIndex                     : 3
         PollValue                     : 0x53
         Memory Detail                 :

                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           eeprom        65    20     4    0 no       1024    4      0  3600  3600 0xff 0xff
           flash         65     6   128    0 yes     32768  128    256  4500  4500 0xff 0xff
           lfuse          0     0     0    0 no          1    0      0  4500  4500 0x00 0x00
           hfuse          0     0     0    0 no          1    0      0  4500  4500 0x00 0x00
           efuse          0     0     0    0 no          1    0      0  4500  4500 0x00 0x00
           lock           0     0     0    0 no          1    0      0  4500  4500 0x00 0x00
           calibration    0     0     0    0 no          1    0      0     0     0 0x00 0x00
           signature      0     0     0    0 no          3    0      0     0     0 0x00 0x00

         Programmer Type : STK500
         Description     : Atmel STK500 Version 1.x firmware
         Hardware Version: 2
         Firmware Version: 1.18
         Topcard         : Unknown
         Vtarget         : 0.0 V
         Varef           : 0.0 V
         Oscillator      : Off
         SCK period      : 0.1 us

avrdude: AVR device initialized and ready to accept instructions

Reading | ################################################## | 100% 0.05s

avrdude: Device signature = 0x040404
avrdude: Expected signature for ATmega328 is 1E 95 14
         Double check chip, or use -F to override this check.

avrdude done.  Thank you.

Error while burning bootloader.

Did you check wiring?:
At least 10 times. I assume if my board does not use the standard SPI pins on (MOSI) 11, (MISO) 12 , and (SCK) 13, the ifndef will use a bitbang approach to force this to work. It would seem I am not quite that far along in thie process based on the device signature checksum error.

Questions:

  1. Do I need a 10uF capacitor between reset and ground? Is that size fairly strict or is there an acceptable range?

  2. Please shed some light on what I am doing incorrectly?

  3. Do I need to just purchase an AVR ICP/ISP?

Notes:
I am using Arduino IDE 1.6.12.