im having exacting d same problem. I bought my programmer from dat site as well. Its d same programmer. It programmed my Atmega8 n Atmega16 well initially, but den 1 by 1, all of dem stopped resaponding. PonyProg started showing d error mesage, dat d nmo or unknown device present. I replaced my ATMEGA8 wid ATMEGA16, n it worked well for some time but den again all of a sudden, it also stopped responding.
However, Ive noticed some things
The MOSI link does not blink. But the MISO link always blink when I try 2 program it.
BY default, JTAG is enabled at PORTC, n I had connectred LEDS to all d pins of PORTC, n PINS of JTAG do glow dimly.
Ive already lost arnd 3 ATMEGA8 and 1 ATMEGA16 one by one.
It seems that uve not given external supply of 5 V to the VCC and Ground Pin. Give that, and it should start being recognised by ponyprog. And do check your settings at PonyProg Setup, Interface Setup. And change it to Serial ISP. (by default its parallel;). Also select the correct AVR that ur programming from the list, or keep that option to AVR Auto.
HELP ME ALSO!!! I doubt if the problem is with the programmer, coz virtually, i cant see anything in it except for some resistances and diods. There doesnt seem to b any component which could have gone wrong! And since JTAG pins r glowing, I think dat my AVR is also fine. But since the MOSI pin LED is not blinking at all, i think problem is with the MISO part only. I guess that when i last programmed it correctly, i didnt allow it 2 b verified fully. I pressed the user abort button. Hope dat doesnt matter much, coz after dat my MCU did work d way I programmed it.
And since I dont know Anything abt fuse setting, I didnt change them.