Well, it's been a struggle to get the Dragon to do parallel programming. This is what is looks like with the extra socket and headers installed:
To save a lot of mucking around with wires, I made up a jig that connects everything together as specified by the wiring diagram for parallel programming. Here is the back (the underneath):
And the top, which has everything wire-wrapped (thanks again Crossroads!). You just press it into place and all 21 connections are made in a couple of seconds:
To make it actually work I downloaded AVR Studio 5 (the latest version, which is somewhat large: 554 Mb download plus installing Microsoft's .NET framework).
After installing it wanted to upgrade the firmware in my Dragon, so I said OK, and it did that. But, it only recognized SPI (serial) programming, which required an external crystal. I wanted the good stuff, the high-voltage parallel programming. But the AVR Studio 5 didn't offer that.
I fired off a detailed email to Atmel, and was pleasantly surprised that it got added in as a "ticket" into their system within a few minutes. So far so good.
But meanwhile, I thought "how would you sell these if they didn't perform as advertised?". So I then looked around for their earlier version, AVR Studio 4. Aha! Somewhat smaller download (116 Mb), much faster install.
When I connected to the Dragon it said something like "your firmware is too recent - do you want do downgrade?". Well, who can resist such an offer? So I downgraded the firmware.
After that, yes it worked! The Parallel programming worked, and I could read the fuses download the program memory, whatever. And without needing a crystal.