How to hook up the cheap AVR-ISP500 programmer I bought on Sparkfun (programmer/header pin to AVR pin):

• V_TAR to Vcc
• MOSI to MOSI
• GND to GND
• MISO to MISO
• SCK to SCK
• TRST to RESET

And the FT232RL USB to serial breakout board (breakout to AVR):

• TXD to RXD
• RXD to TXD
• GND to GND

Note that RXD is connected to TXD and vice versa, and that the 3.3V pin is left unconnected.