I thought I'd try my LD-V1001 again since it's warmer. Still no dice. It stays in parked mode when I issue it the play command.
I also ordered the AVR Dragon today (and a routing card for the STK600 that matches the ATMega324P). The Dragon is a low cost debugger. I've decided that I really need it to work out the software bugs in my AVR code because using the simulator can be brutal when a lot of setup is required. Based on past history, I'd say the Dragon will be on my door step in exactly 7 days.