Hey guys just thought I would pop on and mention how I am able to my boardunio as an ISP and program 84's and 85's with Arduino IDE version 1.0.2
I downloaded the tgz (zip) files ( I am running Linux) for the IDE, then the ATiny_master and the the ATiny cores (latest version) from the Google tiny cores site.
Installed the IDE........unpacked the master.zip in the /arduino/hardware directory, the unpacked the tiny core package in the same directory.
Select the appropriate board, programed, and USB port and all is good. I always burn the "boot loader" to 1mhz first and then to 8 (reselect the higher speed board)
Also be aware that anything higher than 8mhz requires an external oscillator.
I have combined blink and fade sketches into one , and this procedure works for me,
Though I am still having issues with watchdog timers and software serial.