Hello Carl.
Have you tried a reboot of your PC after installing the libusb.dll.
Also, are you selecting the arduino from the Avrdudess drop down menu.
I'm assuming that you have flashed the arduino isp sketch to the arduino.?
And are you selecting the correct com port to be used with the arduino as the programmer.
Can you see the arduino com port in your PC device manager.
I've always found zadig a useful tool to install peripherals like the arduino etc to the PC to be used with Avrdudess too.
Kind regards, James.