#if in compilation for use or arduino UNO and ATMEGA 328 or LILY with ATTINY 85

This may help answer why: http://arduino.land/FAQ/content/2/12/en/why-do-#ifdef-macro_s-stop-the-sketch-from-compiling.html

Also this may help your board selection. ( replace CHIPSET macro with whatever you like ).

// 168 and 328 Arduinos
#if defined(__AVR_ATmega168__) ||defined(__AVR_ATmega168P__) ||defined(__AVR_ATmega328P__)
	#define CHIPSET ATmega_168_168P_328P 
	
// Mega 1280 & 2560
#elif defined(__AVR_ATmega1280__) || defined(__AVR_ATmega2560__)
	#define CHIPSET ATmega_1280_2560 
	
// Sanguino
#elif defined(__AVR_ATmega644__) || defined(__AVR_ATmega644P__) || defined(__AVR_ATmega1284P__)
	#define CHIPSET ATmega_644_644P_1284P 
	
#elif defined(__AVR_ATmega32U4__)

	// Teensy 2.0
	#ifdef CORE_TEENSY 
		#define CHIPSET ATmega_32U4_A 
		
	// Teensy
	#else
		#define CHIPSET ATmega_32U4_B 
	#endif
	
// Teensy++ 1.0 & 2.0
#elif defined(__AVR_AT90USB646__) || defined(__AVR_AT90USB1286__)
	#define CHIPSET AT90USB_646_1286 
#endif