There are 4 pins. Two pins are power and ground, connect these accordingly to your voltage regulator. If you want to get picky, place a bypass capacitor of .1uF across the power supply pins. One of the other pins will be OUT. Connect this to the OSC-IN pin of the atmel (Refer to datasheet). The other oscillator pin is not used since you are using this type of external oscillator.
Why would you want to use an expensive crystal oscillator? Usually a resistor/capacitor suffices for most people. A crystal (plus 2 20pf caps) is just as good as the external one when used with the Atmel's built-in crystal oscillator, and cheaper.