stealing duemilanove TTL, possible? if not options

EDIT i changed the title to better describe my questions, forgive me if you’ve read this already.
[quick recap of questions, explinations below]
Is the FTDI chip wired to any of the pin headers broken out on the duemilanove (ICSP, pin0, etc)?
If not, what am I doing wrong in winAVR that it can’t even compile Blink.pde?
winAVR/ICSP is not ideal as Id like to be able to program this chip once installed, and as explained below, it only has TTL broken out for a USB/serial > TTL adapter, but if I’m stuck, i’m stuck and will do whatever I can to get it working.

I’m trying to upload a skech to a mega368 (already has bootloader) that’s surface mount and already soldered to a board that only has serial TTL breakout (for a USB > TTL, serial > TTL adapter).

I have no serial port on my laptop, and can’t afford the $15-20+ for a USB > TTL serial adapter (don’t know when I’ll be able to either).

In my haste to find an answer, I found I could use my duemilanove, but it seems to only work with ISP. I figured I could make a nail board type device to program the 2nd board once or twice but wanted to compile a skech before I tried.

So I decide to go with the classic “blink” program to see if it works. The only thing I did in the .pde was change the LED pin to 6 (one of the pins hooked up to an LED). copy the makefile over to the directory. change the text to suit my hardware [see below].

TARGET = $(notdir $(CURDIR))
INSTALL_DIR = C:/arduino/arduino-0017
PORT = /dev/tty.usb*
MCU = atmega328p
F_CPU = 16000000

When I try to “make all” It returns an error. [entire log of the “makeall” command below]

> "make.exe" all
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/pins_arduino.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/wiring.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/wiring_analog.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/wiring_digital.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/wiring_pulse.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/wiring_serial.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/wiring_shift.d: No such file or directory
makefile:242: C:/arduino/arduino-0017/hardware/cores/arduino/WInterrupts.d: No such file or directory
makefile:243: C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.d: No such file or directory
C:/arduino/arduino-0017/hardware/tools/avr/bin/avr-g++ -M -mmcu=atmega328p -I. -DF_CPU=16000000 -IC:/arduino/arduino-0017/hardware/cores/arduino -Os C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.cpp | sed "s;HardwareSerial.o:;C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.o C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.d:;" > C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.d
HardwareSerial.o:  \
 C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.cpp \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/stdio.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/inttypes.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/stdint.h \
  c:\arduino\arduino-0017\hardware\tools\avr\bin\../lib/gcc/avr/4.3.2/include/stdarg.h \
  c:\arduino\arduino-0017\hardware\tools\avr\bin\../lib/gcc/avr/4.3.2/include/stddef.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/string.h \
  C:/arduino/arduino-0017/hardware/cores/arduino/wiring.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/io.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/sfr_defs.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/iom328p.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/portpins.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/common.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/version.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/fuse.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/lock.h \
  C:/arduino/arduino-0017/hardware/cores/arduino/binary.h \
  C:/arduino/arduino-0017/hardware/cores/arduino/wiring_private.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/interrupt.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/avr/delay.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/util/delay.h \
  c:/arduino/arduino-0017/hardware/tools/avr/lib/gcc/../../avr/include/util/delay_basic.h \
  C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.h \
/usr/bin/sh: HardwareSerial.o:: command not found
/usr/bin/sh: C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.o: No such file or directory
/usr/bin/sh: /c/WinAVR-20090313/bin/ : is a directory
make.exe: *** [C:/arduino/arduino-0017/hardware/cores/arduino/HardwareSerial.d] Error 127

> Process Exit Code: 2
> Time Taken: 00:07

The serial pins are connected to digital 0 and 1. And the FTDI is connected to the serial pins. See here:

and here:

But I do not completely understand your issue. The issue seems to be with your makefile not with the serial pins.

So I could just remove the duemilanoves ATmega, connect rx/tx to the headers on the board and upload sketches?

Yes, this should work. However you should keep the wires short and the baud rate reasonable low since you will have longer connections between the FTDI and the controller.