Arduino (ATmega328) in-circuit programming
See AVR Studio 4 online help ...


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  Created: Tue 01 Nov 2005 08:17:09 AM EST


The '328 didn't exist until 2009. This is why you go to the primary source when possible.

But yes, that programmer supports the '328, as well as all AVR chips that support ISP. The software needs to support the programmer and the chip as well, but I can tell you that AVRDUDE, which is the AVR command line programmer of choice (as well as the one that the Arduino IDE uses), does. You're covered.