using Arduino to program the ATtiny167..

still working on a hello world program

You need to take a step back. Start by getting avrdude to communicate reliably with the target (your ATtiny167). A typical command-line would be...

avrdude -p attiny13 -c stk500v1 -P \\.\COM14 -b 250000 -v -v -v -v

The output will be similar to this...

avrdude: Version 5.10, compiled on Jan 19 2010 at 10:45:23
         Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
         Copyright (c) 2007-2009 Joerg Wunsch

         System wide configuration file is "C:\arduino\arduino-1.0\hardware\tools\avr\etc\avrdude.conf"

         Using Port                    : \\.\COM14
         Using Programmer              : stk500v1
         Overriding Baud Rate          : 250000
avrdude: serial_baud_lookup(): Using non-standard baud rate: 250000avrdude: Send: 0 [30]   [20]
avrdude: Send: 0 [30]   [20]
avrdude: Send: 0 [30]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]
         AVR Part                      : ATtiny13
         Chip Erase delay              : 4000 us
         PAGEL                         : P00
         BS2                           : P00
         RESET disposition             : dedicated
         RETRY pulse                   : SCK
         serial program mode           : yes
         parallel program mode         : yes
         Timeout                       : 200
         StabDelay                     : 100
         CmdexeDelay                   : 25
         SyncLoops                     : 32
         ByteDelay                     : 0
         PollIndex                     : 3
         PollValue                     : 0x53
         Memory Detail                 :

                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           eeprom        65     5     4    0 no         64    4      0  4000  4000 0xff 0xff
                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           flash         65     6    32    0 yes      1024   32     32  4500  4500 0xff 0xff
                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           signature      0     0     0    0 no          3    0      0     0     0 0x00 0x00
                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           lock           0     0     0    0 no          1    0      0  4500  4500 0x00 0x00
                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           calibration    0     0     0    0 no          2    0      0     0     0 0x00 0x00
                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           lfuse          0     0     0    0 no          1    0      0  4500  4500 0x00 0x00
                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           hfuse          0     0     0    0 no          1    0      0  4500  4500 0x00 0x00

         Programmer Type : STK500
         Description     : Atmel STK500 Version 1.x firmware
avrdude: Send: A [41] . [80]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [02]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [81]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [01]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [82]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [12]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [98]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
         Hardware Version: 2
         Firmware Version: 1.18
         Topcard         : Unknown
avrdude: Send: A [41] . [84]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [85]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [86]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [87]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [89]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
         Vtarget         : 0.0 V
         Varef           : 0.0 V
         Oscillator      : Off
         SCK period      : 0.1 us

avrdude: Send: A [41] . [81]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [01]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [82]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [12]
avrdude: Recv: . [10]
avrdude: Send: B [42] . [14] . [00] . [00] . [01] . [01] . [01] . [01] . [02] . [ff] . [ff] . [ff] . [ff] . [00]   [20] . [00] @ [40] . [00] . [00] . [04] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]
avrdude: please define PAGEL and BS2 signals in the configuration file for part ATtiny13
avrdude: Send: P [50]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]
avrdude: AVR device initialized and ready to accept instructions

Reading |                                                    | 0% 0.00savrdude: Send: V [56] 0 [30] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [1e]
avrdude: Recv: . [10]
avrdude: Send: V [56] 0 [30] . [00] . [01] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [90]
avrdude: Recv: . [10]
Reading | #################                                  | 33% 0.06savrdude: Send: V [56] 0 [30] . [00] . [02] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [07]
avrdude: Recv: . [10]
Reading | ################################################## | 100% 0.11s

avrdude: Device signature = 0x1e9007
avrdude: Send: V [56] P [50] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: j [6a]
avrdude: Recv: . [10]
avrdude: safemode read 1, lfuse value: 6a
avrdude: Send: V [56] P [50] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: j [6a]
avrdude: Recv: . [10]
avrdude: safemode read 2, lfuse value: 6a
avrdude: Send: V [56] P [50] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: j [6a]
avrdude: Recv: . [10]
avrdude: safemode read 3, lfuse value: 6a
avrdude: safemode: lfuse reads as 6A
avrdude: Send: V [56] X [58] . [08] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: safemode read 1, hfuse value: ff
avrdude: Send: V [56] X [58] . [08] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: safemode read 2, hfuse value: ff
avrdude: Send: V [56] X [58] . [08] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: safemode read 3, hfuse value: ff
avrdude: safemode: hfuse reads as FF
avrdude: Send: V [56] . [a0] . [00] < [3c] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: Send: V [56] . [a0] . [00] = [3d] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: Send: V [56] . [a0] . [00] > [3e] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: Send: V [56] . [a0] . [00] ? [3f] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]

avrdude: Send: V [56] P [50] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: j [6a]
avrdude: Recv: . [10]
avrdude: safemode read 1, lfuse value: 6a
avrdude: Send: V [56] P [50] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: j [6a]
avrdude: Recv: . [10]
avrdude: safemode read 2, lfuse value: 6a
avrdude: Send: V [56] P [50] . [00] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: j [6a]
avrdude: Recv: . [10]
avrdude: safemode read 3, lfuse value: 6a
avrdude: safemode: lfuse reads as 6A
avrdude: Send: V [56] X [58] . [08] . [00] . [00]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [ff]
avrdude: Recv: . [10]
avrdude: safemode read 1, hfuse value: ff
...
avrdude: Send: Q [51]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [10]

avrdude done.  Thank you.