Behavior of my boards:
1. TinyDuino by itself. Putting 1632 battery in makes green LED blink once. Pressing and releasing restart button makes green LED blink once.
2. Same behavior with TinyShield USB board attached.
3. TinyDuino + USB board, no battery. Plugging it into USB power makes green LED blink 8 times, both RX and TX amber LEDs on USB board blink twice. Pressing restart button makes green LED blink once. (running Windows 8.1, assume behavior would be the same with other OS or versions.)
Don't understand avrdude error, someone else probably will. The AVR MEGA328p chips, when from Arduino or an Arduino type board (TinyCircuits) do have code on them, the bootloader code, which is what allows the sketch to be uploaded. I don't know if this code is locked or not, i.e. whether it can be overwritten from an Arduino sketch, but if using Arduino sketches, one generally does not want to do that, you want and need that bootloader code in there.
However, any other sketch code loaded previously will not matter and will be overwritten (leaving the bootloader code untouched).
If, under Tools, you have definitely chosen the correct Port and the correct Board (Arduino Pro or Pro Mini), then I do not know.