I presume, "extreme AVR burner" is a simple serial programmer.
You can't set SPIEN bit to 1 (disabling serial programming mode) with a serial programmer, in so far High Fuse EF won't be set.
But it's easy to set a wrong clock option that requires an external clock source to XTAL1 for furher programmer access, as indicated in the datasheet. You have set CLKSEL = 1001 (external low frequency oscillator).
Once I had the same problem. I used a cheap AVR programmer to program ATMega16 and wrote some wrong fuses and then the same programmer was unable to program the chip again and then I used my EasyAVR v7 development board's onboard programmer to erase the chip and reprogram it and my chip started to work again.
1) don´t disable "serial programming mode"
2) set the clock fuse bits to "External Crystal/Ceramic Resonator" as I told you in another thread insted of "External Low-frequency Crystal"
then you will have a lot of fun with your Mega8.
BTW: although these are a lot of pages.... but reading the datasheet is essential. I think there´s no way around this.
I recommend to use the PDF instead of paper, then you can use the blue colored links within the PDF and do a "search" on keywords.