This issue is similar but different from the issue in this old posting (Dec-2011, viewed 9187 times) http://forum.arduino.cc/index.php?topic=84095.0
The same Led example compiles without errors w/Arduino as UNO. Lately I have had a strange problem with sketches that previously compiled without errors suddenly reporting errors. Suspecting a virus on my Windows system I restored an old backup made prior to my introduction to the Arduino and the errors disappeared. On the chance that it was actually my antivirus program (Malwarebytes) corrupting the system I uninstalled that last night and will wait an see if the problem went away. Just for the record, I had also backed up my sketch folder to an external non-boot drive and found that the error did not go away by restoring the sketch, suggesting that the sketch folder was also corrupted, however after restoring the boot drive and copying the same sketch from my backup folder the sketch still worked after the boot drive restore indicating that the corruption was in the OS files, not Arduino files. I did not have time to retry the ATtiny85 bootloader install procedure after restoring the boot drive but will try it tonight. I am following instructions from here: http://hlt.media.mit.edu/?p=1695
If anyone has any idea what is causing either of the above two issues I would appreciate a reply. I did see a posting somewhere to the effect that IDE ver. 1.02 would not work for this procedure but several of the other 1.0x versions would. I don't know which one I have but I'll check tonight.