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Hi.. I have problem with it too. I don't know what fuse bit should be use. I try fuse A987 (cksl3..0) to 1010 for external crystal and it can't detect my chip any more.. even erase chip.. I use basecom and stk 200/300 compatible download cable..
have you try fuse it to this value ? ( follow datasheet) and if you try another value what value you used. did you still possible to change to another value ?.. I afraid that i will lost more my ATMEGA 16 chip so I need more onformation before I try another one (It very hard to buy one in my country).. If I have any more information I'll tell you..