Not sure if anyone else here ran in to this but you can not use either the commend or gui tool to flash more then %87 of the mega328 code. The NRWW is apparently in the way. If your main project is under %87 used flash, it works fine. Once it hits 7800 it will die.
See the link below for the detailed info on the matter written by a non English speaking writer. I eventually was able to understand hat he meant by playing with the source. Reading the preceding posts will not help much, as we had a hard time tracking this down.Though now I believe we have homed in on the issue. My limited knowledge tells me that the HID flash code is trying to flash but the HID code is in the way.
http://www.avrfreaks.net/comment/216349 ... nt-2163496
Does anyone know Fischl ?