Is my arduino toast?

hi all,

After connecting my MCP23016 board, along with some other connections, I noticed my Arduino Ethernet (with POE) was setting all ports high all the time..

Not able to connect/program via FTDI, I made an Arduino as ISp from another board and connected. The results were not very promisng..

avrdude: Device signature = 0xffffff
avrdude: Yikes!  Invalid device signature.
avrdude: Expected signature for ATMEGA328P is 1E 95 0F
avrdude: safemode: lfuse reads as FF
avrdude: safemode: hfuse reads as FF
avrdude: safemode: efuse reads as 7

avrdude: safemode: lfuse reads as FF
avrdude: safemode: hfuse reads as FF
avrdude: safemode: efuse reads as 7
avrdude: safemode: Fuses OK

avrdude done.  Thank you.

I have also tried to set the fuses to what seems a good value, but I don't seem to be able to write them.

I have a slight suspicion that this board is dead, but would like to touch base with you here to see if there is anything I can check/do to see if this board is ready for the recycle bin.. ?

Background info; I did try the Arduino-as-ISP on another board, no problems. The onboard LED's on the broken board come on immediately after power is provided (no blinking). Below is the failed fuse writing sequence;

avrdude: reading input file "0xDE"
avrdude: writing hfuse (1 bytes):

Writing |                                                    | 0% 0.00s ***failed;
Writing | ################################################## | 100% 0.32s

avrdude: 1 bytes of hfuse written
avrdude: verifying hfuse memory against 0xDE:
avrdude: load data hfuse data from input file 0xDE:
avrdude: input file 0xDE contains 1 bytes
avrdude: reading on-chip hfuse data:

Reading | ################################################## | 100% 0.04s

avrdude: verifying ...
avrdude: verification error, first mismatch at byte 0x0000
         0xde != 0xff
avrdude: verification error; content mismatch

TIA,
/steven