Step 5: Program the ATMega168 Microcontroller
You can make a very cheap ATMega168 programmer, or buy an AVRISP MK2:
And download the free AVR Studio development environment:
The hex file of the code is available here. Use "coug-unified-16k.hex":
Here's the code:
The fuse bits are Extended High Low = F8 DC F7. But if you are using Ponyprog, the fuse bits are 08 DC F7.
If you don't want to bother to program it yourself, then you can buy a preprogrammed one.