ATmega328P - reset not working

dc42:
There is a fuse in the atmega328p that turns the RESET pin into an ordinary I/O pin. Maybe that fuse got changed?

Bit 7 of the high fuse controls this. It is set correctly to use the pin for RESET function (hfuse = 0xde).

I finally concluded that reset is working. What isn't working is executing any sketch following reset.

Jim