Can you please the test that I suggested with the Uno and Duemilanove _with the same cable_ to see how that behaves? If it still fails, do you have any reason to believe that the Duemilanove is still functional?
For programming the Peggy 2, can you please say what your actual configuration is there? As you have described it so far, there isn’t enough information about the hardware configuration to begin to guess what the actual problem might be.
Have you ever reprogrammed any of these boards by a mechanism other than using the bootloader?
