Trying to get my PSU board working with the Arduino/AVR environment, let's document my problems...
1) Cannot find my Sparkfun FTDI serial board, so tried an SI labs no-name board. Doesn't work at all wiht a proper Ardunio Pro board.
2) Tried my official AVR ispMkII programmer to program the PSU micro. Nope, turns out the Arduino has major problems with the ispMKII under Windows. Everyone tells me to use Linux... or this or that brand programmer etc... don't have any of those, thanks anyway.
3) Uninstalled the Jungo MKII driver and installed the recommended libUSB driver. Still doesn't work with Arduino pro.
4) Removed the micro from an Arduino Duemelinove so I could use it as an FTDI interface. That works OK when talking to the Arduino pro board. Getting somewhere...
5) Tried using the AVRispMkII with Arduino IDE to program the bootloader on my PSU board. Doesn't work.
6) Installed latest Atmel AVR Studio 5 software. Talks to the ispMKII and updates the latets firmware, no problems. But then refuses to talk to the ispMKII at all using either Jungo or libUSB drivers.
7) Used my old machine with AVR Studio 4 and now ispMkII works fine on my PSU board and I can burn a bootloader - or so I think.

Existing working Duemelinove/FTDI interface still works with Arduino Pro board, but refuses to work with my PSU board. tried various reset things to no avail.
9) Used my old machine and Studio 4 to read the firmware from the actual Arduino Pro board and clone it onto my PSU board. PSU board STILL doesn't talk with Arduino IDE.
So there you have, a entire day wasted trying to get this stupid thing working.
I am very quickly coming to the conclusion that the Arduino environment is shit, and AVR Studio 5 is shit, and am starting to regret using both now...
Never had any issues before with Studio 4 and AVR's direct with ispMKII programmer, it's always worked for me.
Not happy.
Dave.