I have an ATmega328 chip with the boot-loader installed.
I also have an Arduino Uno with the ATmega328 chip removed.
I hooked this chip up to a breadboard with the proper 22pF caps, 16MHz crystal, and 10kΩ pull-up resistor.
The LED flasher was loaded prior, and this works fine when I hook an LED and resistor up to pin 19. I have confirmed my external crystal works by disconnecting it, and the flashing stops, when I reconnect the crystal, the flashing continues.
Power is fed from my Arduino Uno 5 V out to the DIY Arduino
I connected the reset wire, and data wires, ensuring pin 2 went to RX and pin 3 to TX.
In the software
First to confirm everything works, I removed the chip from the breadboard and placed it in the Arduino. The sketch uploaded successfully using the settings: Arduino Uno as board and AVRISP mkll as programmer.
Now I move the chip to the breadboard, and ensure all the wires are connected. The LED starts to blink again, but when I try to upload the sketch, I get an error:
avrdude: stk500_recv(): programmer is not responding
I ensure continuity between the reset, TX, RX, and power connections and try different settings like Arduino as ISP and different boards under settings including the Duemilanove and nano but nothing seems to be working.
Any suggestions on what to try next?