Error: could not find USBtiny device (0x1781/0xc9f)

https://learn.adafruit.com/usbtinyisp/faq

How do I program a bootloader onto an Arduino?

Put a fresh AVR chip (such as an Atmega328) into the Arduino in the correct orientation

Remove the jumper from the USBtinyISP

Plug in the USBtiny to USB

Plug the Arduino into DC or USB so it is powered

Plug the 6 pin cable from the USBtinyISP into the Arduino so that pin 1 mark is lined up with the red wire on the cable

Start up Arduino IDE

Select the chip/Arduino you are using in the Tools->Board menu

Do not select a COM/Serial port

Select Tools->Burn Bootloader->w/USBtinyISP

The USBtinyISP red LED should light up. It will take a minute or two to program the chip

When it is done, the IDE will tell you it has completed and the red LED will be off.