Нашел, иззачего AVR109 у меня не работал... ато уже начал сходить с ума...
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I should have spotted this earlier and saved wasting all our time. The fact is that an earlier version of AVR Studio (4.16) had a bug that would prevent .hex files that weren't based at 0x0000 from programming properly. This was fixed by SP1 for 4.16 and the later 4.17 no longer has this fault. So download 4.17.666 and all will be well.