Do you have a crystal (plus matching capacitors) or a ceramic oscillator tied to Pins 2 & 3 of the AVR? The fuses are set up to use an external oscillator, and if you don't have one, programming will not succeed.
This what you should have, in a minimalist target board, assuming a 2X3 pin header ICSP connection
AVR Pin 1 - ICSP Pin 5
For an External Oscillator
AVR Pin 2 - External Oscillator Clock
AVR Pin 4 - Gnd - ICSP Pin 6 - External Oscillator Gnd
For Ceramic Osclillator
AVR Pin 2 - Ceramic Oscillator Pin 1
AVR Pin 3 - Ceramic Oscillator Pin 3
AVR Pin 4 - Gnd - ICSP Pin 6 - Ceramic Oscillator Pin 2
(Ceramic Oscillators have the matching capacitors built in already.)
AVR Pin 2 - Crystal Pin 1 - Matching Capacitor 1 Pin 1
AVR Pin 3 - Crystal Pin 2 - Matching Capacitor 2 Pin 1
AVR Pin 4 - Gnd - ICSP Pin 6 - Matching Capacitor 1 Pin 2 - Matching Capacitor 2 Pin 2.
AVR Pin 5 - ICSP Pin 4
AVR Pin 6 - ICSP Pin 1
AVR Pin 7 - ICSP Pin 3
AVR Pin 8 - Vcc - ICSP Pin 2.