I am trying to burn the bootloader to a ATMEGA328P chip soldered on my project board (it's a surface mount chip straight from Digikey) using 6 pin ISP. I am using usbtinyisp and arduino ide configured as board "arduino pro or pro mini" and cpu as "atmega328p 3.3V 8MHz". When I click burn bootloader I get error
Error while burning bootloader.
avrdude: initialization failed, rc=-1
Double check connections and try again, or use -F to override
This seems to be a very common issue and I tried to check everything mentioned in various posts. I checked that every of the 6 pins is connected to same pin on the tinyisp using multimeter, I see the vcc shows up as 5V, I double checked that all pins for gnd and vcc and avcc are connected. There is currently not much else on the board populated so no pins are loaded. There's a 10k resistor from reset to vcc, bypass capacitors on power pins and crystal with its capacitors populated as well.
The only thing I was suspecting is that the crystal does not seem to be oscillating. It is an 8MHz crystal and most guides give 16 but it is still supposed to work. I tried to replace it with 16 and I also replaced load capacitors from 18 to 33pF and then back, no change. I am at the end of my wits - is it not possible to program SMD version of ATMEGA328P and only the DIP version (since that's all I see in all tutorials)? I see from datasheet that the default fuse is for 8MHz internal resonator so I would suspect that is why crystal is not oscillating but then is it even needed? Does anyone have any ideas? Thanks.