I cannot seem to be able to program memory locations 0-3.
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I came across the same problem when I was designing my programmer (entirely mine, not this Atmel stuff). I solved it by adding extra delay between applying Vcc and doing anything else. Data sheet doesn't say anything about this delay. All this is IIRC, this was a long time ago.

In your case, try to disable CPU cache in BIOS to slow down your PC and see if it helps.