I am trying to program the ATmega16 using a AVR-ISP (the one in www.triindia.co.in robo shop)...and using ponyprog

ATmega16: was once programmed by a guy on lamington road but no evidence of the program working...

PonyProg: i have version v2.06f BETA and cant find the security bit thing under edit...

AVR-ISP: the left side red light comes on when i connect a 5V power source to the ATmega...

here's what i have done so far...pl tell me if ive done something wrong...

1. Connected all the wires of programmer to Atmega correctly...me and my friend checked this so it cant be wrong...

2. Connected 5V power source to the atmega16 [red light comes on]

3. on pony prog:
(i) setup->calibration->yes : says calibration ok...
(ii) setup->interface setup->select serial, select SI Prog I/O, select COM1
probe: says ok
then i clicked ok
(iii) now when i click read device it says "Device missing or unknown device (-24)"
if i click ignore the scren is full of FF's and zeroes....

Please please please help me ...im thoroughly stuck and we have spent ages working on the sensors...and dont want our efforts to go to waste due to this problem...

Thanx
-Vyder