Folks,
The AVR-USB-162 was step debugging, with my ARV dragon!
And then I decided to reflash the DRAGON from a VM on Linux. That’s right a vm on linux
!!! UNBELIEVABLE?! Olimex AVR-ISB-162 board.
I was using the new Sparkfun 10-to-6 pin adapter on the ICSP port of the board to
connect. I read that the little USB chip would step debug with the DRAGON via "debug
wire" which is a 3 wire connection. Apparently this Sparkfun 10-to-6 wire converted maintained the
correct connections because when I set the ISP frequency to 125khz it finally took off
and ID’ed the micro-controller correctly, and I could step debug from inside AVR Studio
4.18 sp3.
I then tested this with the supplied button program and saw that it was seeing the state
change when I pressed the button and it was actually stepping the cursor into the correct
section of the code in response. Hurray!
THEN IN MOMENT OF LUNACY I DECIDED TO RE-FLASH THE DRAGON TO UPDATE IT. UNDERSTAND, I DID
NOT KNOW WHAT RELEASE I WAS AT (60B?). ANYWAY IT BRICKED ON FAILURE TO UPDATE. I THEN
TOOK IT TO MY LAPTOP AND RE-FLASHED THE DRAGON. NOW APPARENTLY OK.
STILL NOW JOY WITH DEBUGGING USB-162. I TRIED ROLLING BACK THE FIRMWARE BUT AS I AM NOT
SURE ABSOLUTELY WHAT RELEASE I WAS AT, WELL YOU SEE WHAT I MEAN. AVR STUDIO SP1 AND SP0,
SP2 NO JOY. ATMEL DOES NOT BUST OUT THE DRAGON UPGRADES INDEPENDENTLY.
So hysteria aside. Any advice on how to re-establish my debug setup??? It was very touchy
making the connection and original id, from AVR studio, but solid once configure correctly.
I would very much like to get it working again. 
Thanks,
Rando