We just got an assembled an ISP emulator shield last week. I come in this morning to try it. I'm able to successfully load the ArduinoISP sketch. But when I try to program a chip, I get the error (verbose set):

Arduino: 1.0.5 (Linux), Board: "Arduino Duemilanove w/ ATmega328"
/home/james/.local/arduino/hardware/tools/avrdude -C/home/james/.local/arduino/hardware/tools/avrdude.conf -v -v -v -v -patmega328p -cstk500v1 -P/dev/ttyACM0 -b19200 -e -Ulock:w:0x3F:m -Uefuse:w:0x05:m -Uhfuse:w:0xDA:m -Ulfuse:w:0xFF:m 

avrdude: Version 5.11, compiled on Sep  9 2011 at 16:00:41
         Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
         Copyright (c) 2007-2009 Joerg Wunsch

         System wide configuration file is "/home/james/.local/arduino/hardware/tools/avrdude.conf"
         User configuration file is "/home/james/.avrduderc"
         User configuration file does not exist or is not a regular file, skipping

         Using Port                    : /dev/ttyACM0
         Using Programmer              : stk500v1
         Overriding Baud Rate          : 19200
avrdude: Send: 0 [30]   [20] 
avrdude: Send: 0 [30]   [20] 
avrdude: Send: 0 [30]   [20] 
avrdude: ser_recv(): programmer is not responding
avrdude: stk500_recv(): programmer is not responding

avrdude done.  Thank you.

I'm using Arduino v1.0.5 and an Arduino Mega 2560 (from SainSmart). I'm programming an ATMEGA328P-PN in the socket with the Arduino board set to Arduino Duemilonove w/ ATmega328 and Programmer set to Arduino as ISP.