Hmm, there are some physical things that could be wrong: is the chip in backwards? are any of the legs of the chip bent underneath instead of actually inserted in the socket?
Can you enable verbose output during upload (in the preferences dialog) and post the full text of the messages you get when trying to upload? There might be more information that helps debug what's happening.
The "rst" (reset) solder jumper isn't soldered together, is it?