Hook up everything according to the pictures above, for exact pin to pin use the info/diagrams below.
The holes on the back of the LilyT* are too small for the jumper wires, had to find some thin wire. Used some five strand copper wire, bent it apart, and then took... A long time getting them to stay connected. There's no room because the Attiny85 sits almost flush against the board.
- 1. Remove the 10uF capacitor, we need to upload Files->Examples->ArduinoISP to the Arduino first.
2. Select Tools->Board->Attiny85 (internal xMHz clock), where x is whatever you want (I believe it is defaulted to "1", and in order to use higher you have to Burn Bootloader, more info in the sources below)
3. Tools->Programmer->Arduino as ISP
4. Upload your sketch like you normally would.
I believe you can ignore it.
Source for attaching Attinyxx to Arduino
Fritzing diagram and other info