Program doesn't run after Upload Using Programmer with USBasp (Mega2560)

EDIT: **The original issue from google code has been solved. This issue is still open to keep track of uploading problems using USBAsp programmer, see comments below for details.**

This is [Issue 388](http://code.google.com/p/arduino/issues/detail?id=388) moved from a Google Code project.
Added by 2010-10-28T20:36:23.000Z by [rdlsoftware@gmail.com](http://code.google.com/u/rdlsoftware@gmail.com/).
Please review that bug for more context and additional comments, but update this bug.
### Original description

**What steps will reproduce the problem?**
1. Wire up a connection between the Arduino Duemilanove and Mega 2560
2. Upload ArduinoISP (from IDE 021) to Arduino Duemilanove
3. Upload a new bootloader to a Mega 2560 via the 'programmer'

**What is the expected output? What do you see instead?**
After uploading, the mega should accept new sketches.

**What version of the Arduino software are you using? On what operating**
**system? Which Arduino board are you using?**

Arduino 021. Arduino Duemilanove as ArduinoISP (version from IDE 021), Arduino Mega 2560 as target hardware. Windows 7 64 bit.

**Please provide any additional information below.**
See http://www.arduino.cc/cgi-bin/yabb2/YaBB.pl?num=1287952386 for original post of issue.