I have provided a 'makefile' to allow you to compile the program. From a command prompt: change to the directory where you have installed the source and type 'make'.
You can also use AVRStudio but you need to make sure that you go into 'Project, Configuration Options', select the 'Custom Options' and add the following options:
The first option says you are building for an AVR platform and the second option gives your processor clock speed (in this case 8MHz)
You can also use another compiler, say Microsoft Visual C++, to compile the program. If you do this then it wont make any sounds when run - but will just log stuff out to a file. I use this for debugging.