Still having issues using ArduinoISP sketch to install bootloader

Yes, the schematic I posted is very, very wrong on some of the values. I don't know what I was thinking when I drew it up...

Anyway, C3, C4 is 22pf, all resistors are 10K except the pull-ups on LED1 and LED2, which are 470R. All other caps are 0.1uf.

Anyway, removing the pull-ups on LED1 and LED2 changed the reported signature to 0x000000, which tends to point toward the clock not running OR the USB chip screwing up the lines.