Programming ATtiny26 through ArduinoISP, Blink not blinking.

I'v successfully programmed an ATtiny85 using the ArduinoISP sketch on a Duemilanove. I thought I'd try programming an ATtiny26-16PU.

I used cores from avr-developers.com and edited it's boards.txt as follows

extras.name=EXTRAS==============================

##############################################################
arduino_attiny26.name=Arduino-ATtiny26

#arduino_attiny26.upload.using=usbtinyisp
#arduino_attiny26.upload.protocol=stk500
arduino_attiny26.upload.using=arduinoisp
arduino_attiny26.upload.maximum_size=2048
arduino_attiny26.upload.speed=19200

arduino_attiny26.bootloader.low_fuses=0xdf
arduino_attiny26.bootloader.high_fuses=0xca
arduino_attiny26.bootloader.path=attiny45
arduino_attiny26.bootloader.file=ATmegaBOOT.hex
arduino_attiny26.bootloader.unlock_bits=0x3F
arduino_attiny26.bootloader.lock_bits=0x0F

arduino_attiny26.build.mcu=attiny26
arduino_attiny26.build.f_cpu=8000000L
arduino_attiny26.build.core=arduino

I uploaded the basic Blink sketch from the Arduino IDE after defining the LED pin as 2 It seemed to go well (ArduinoISP heartbeat LED continues, Upload LED lights, Error LED stays OFF, no complaints from avrdude in IDE) - but my LED on the PA2 pin (DIP pin 18) stays on permanently.

int greenled = 1;

void setup() {                
  pinMode(greenled, OUTPUT);     
}

void loop() {
  digitalWrite(greenled, HIGH);   // turn the LED on (HIGH is the voltage level)
  delay(5000);                    // wait for a second
  digitalWrite(greenled, LOW);    // turn the LED off by making the voltage LOW
  delay(5000);                    // wait for a second
}

I changed the sketch to change the "greenled" pin from 2 to 1, uploaded it and now a LED connected to PA1 (DIP pin 19) lights up (the rest of PA0-PA7,PB0-PB7 are off/low). This suggests that the sketch is getting loaded onto the ATtiny26.

I tried changing the delay to 50 ms and to 5s in case there was an issue with the clock speed, but this made no difference. I also checked with my toy scope and can see only a steady DC logic 1 voltage level.

Can anyone suggest some troubleshooting steps I can use?