I'm using the same sketch as the one you listed, but I am using IDE 1.0.5.
I don't know anymore why but to get it work I had to make a separate IDE version 1.0.5 with only the SdFat and UFTF_MEGA libraries; I only use this IDE to import images to flash and nothing else.
If the upload goes OK, the image that you upload to flash should be displayed after the upload to flash is finished.
Do you see that image or anything else ?
Could you post a picture of what you see on the screen ?
You will need patience, it took me 3 days to find out how it works.