If you want to burn the Arduino bootloader to an ATMEGA328 chip, select Burn Bootloader -> Arduino as ISP in the Arduino IDE. Before this, place the chip in a ZIF (zero insertion force) socket or wire the ISP6 connectors from the board to another Arduino. Upload the example sketch ArduinoISP to the Arduino that will perform the programming.

Links:

• Schematic
• ArduinoISP Tutorial
• Wiki link