New Arduino Chip

I ordered a ATMEGA328 off of amazon

Do you have a link to the amazon listing for the chip? The issue is if the chip comes preloaded with a bootloader or not. If not you will have to burn a bootloader onto it before it will function with the standard arduino IDE upload function. If it did come with a bootloader then the next step is to know what version of bootloader it had installed into it. If it comes with the Uno bootloader then you must select Uno as the board selection choice in the the IDE tools option before doing an upload, or select duemilanove board if the chip contains the older duemilanove bootloader.

Lefty