Programming off-board 328 thru RS232 & USB to Serial cable.

I am having trouble establishing communications between the IDE and an off-board processor through a USB/RS232 converter.
Please see attached schematic of the Rx/Tx lines and DTR.
Am I doing this correctly?
It seems that the DTE is waiting for a CTS or something because it never sends the data or sketch. Measure on a scope.
I am using a USB to RS232 cable converter. That feeds the MAX232 which then connects to pins 1, 2, and 3 of the ATMEGA328.
See schematic.
Lee Snook

I found the problem myself.
The problem was with the capacitor wiring.
Pins 2 and 6 need to couple to ground through 1 or 4.7uf caps.
See attached schematic.
Lee Snook