XO Stick/Bootloader

An Arduino can be used as a programmer. This is based on [1]

Pinout, using a Duemilanove as the programmer and XO Stick as the target

Burning the bootloader with an Arduino

Download the ArduinoISP program to the Arduino which you are using as the programmer, then select your target board type under tools/Board (at the moment 861 is not supported) then Tools/Burn Bootloader

(because the 861 is not supported I get avrdude: Expected signature for ... is ... Double check chip, or use -F to override this check.)