I tried using the AVR Butterfly with ButtLoad as an ISP for the Baby Orangutan. It worked without any problems at all. In case someone else wants to try, I have written a guide on my homepage.
Man, I know I have an AVRISP mkII, but I want to try this anyway.
I hadn’t really looked at ButtLoad much, so I didn’t know what it could do. It’s cool you can store your code on the Butterfly, then use it to program the Baby-O without having a computer attached. Not that I’m going to be loading software on a gazillion Baby-O’s any time soon, but it’s neat to know there are tools to do that.