ATmega 8 lock bits issue

Hi,
I am new to arduino and uCs.
i am trying to burn bootloader on atmega8l with arduinoISP. I connected 17,18,19 of atmega8 (mosi, miso, sck) with 11,12,13 pin of arduino. reset pin of atmega8 to pin 10 of arduino. a 10uf cap between reset and ground. No external crystal, as i was using internal crystal oscillator.
I am using following board for atmega8-noxtal@8mhz internal rc osciillator.

atmega8noxtal.name=ATmega8-noxtal @8MHz

atmega8noxtal.upload.protocol=stk500
atmega8noxtal.upload.maximum_size=7168
atmega8noxtal.upload.speed=38400

atmega8noxtal.bootloader.low_fuses=0xe4
atmega8noxtal.bootloader.high_fuses=0xc4
atmega8noxtal.bootloader.path=atmega8_noxtal
atmega8noxtal.bootloader.file=ATmegaBOOT.hex
atmega8noxtal.bootloader.unlock_bits=0x3F
atmega8noxtal.bootloader.lock_bits=0x0F

atmega8noxtal.build.mcu=atmega8
atmega8noxtal.build.f_cpu=8000000L
atmega8noxtal.build.core=arduino
atmega8noxtal.build.variant=standard

I was successfully loaded the bootloader and program using arduino isp. But now i see that i can't load bootloader anymore on the chip.
I tried to run avrdude directly instead of running from arduino ide. I observed following things:

  1. The device signature is read as 0x000000
  2. Erasing seems to be working correctly with -e switch with avrdude
  3. Writing any of the lock/fuse bits results in failure
  4. All fuse bits are reading as 0.
    Note: I am still not using any external oscillator.
G:\debojit\electronics project\arduino-1.0.4-windows\arduino-1.0.4\hardware\tools\avr\bin>avrdude -C ..\etc\avrdude.conf -v -p atmega8 -c avrisp -P \\.\COM6 -b 19200 -U lock:w:0x3F:m -F -V

avrdude: Version 5.11, compiled on Sep  2 2011 at 19:38:36
         Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
         Copyright (c) 2007-2009 Joerg Wunsch

         System wide configuration file is "..\etc\avrdude.conf"

         Using Port                    : \\.\COM6
         Using Programmer              : avrisp
         Overriding Baud Rate          : 19200
         AVR Part                      : ATMEGA8
         Chip Erase delay              : 10000 us
         PAGEL                         : PD7
         BS2                           : PC2
         RESET disposition             : dedicated
         RETRY pulse                   : SCK
         serial program mode           : yes
         parallel program mode         : yes
         Timeout                       : 200
         StabDelay                     : 100
         CmdexeDelay                   : 25
         SyncLoops                     : 32
         ByteDelay                     : 0
         PollIndex                     : 3
         PollValue                     : 0x53
         Memory Detail                 :

                                  Block Poll               Page                       Polled
           Memory Type Mode Delay Size  Indx Paged  Size   Size #Pages MinW  MaxW   ReadBack
           ----------- ---- ----- ----- ---- ------ ------ ---- ------ ----- ----- ---------
           eeprom         4    20   128    0 no        512    4      0  9000  9000 0xff 0xff
           flash         33    10    64    0 yes      8192   64    128  4500  4500 0xff 0x00
           lfuse          0     0     0    0 no          1    0      0  2000  2000 0x00 0x00
           hfuse          0     0     0    0 no          1    0      0  2000  2000 0x00 0x00
           lock           0     0     0    0 no          1    0      0  2000  2000 0x00 0x00
           calibration    0     0     0    0 no          4    0      0     0     0 0x00 0x00
           signature      0     0     0    0 no          3    0      0     0     0 0x00 0x00

         Programmer Type : STK500
         Description     : Atmel AVR ISP
         Hardware Version: 2
         Firmware Version: 1.18
         Topcard         : Unknown
         Vtarget         : 0.0 V
         Varef           : 0.0 V
         Oscillator      : Off
         SCK period      : 0.1 us

avrdude: AVR device initialized and ready to accept instructions

Reading | ################################################## | 100% 0.09s

avrdude: Device signature = 0x000000
avrdude: Yikes!  Invalid device signature.
avrdude: Expected signature for ATMEGA8 is 1E 93 07
avrdude: safemode: lfuse reads as 0
avrdude: safemode: hfuse reads as 0
avrdude: reading input file "0x3F"
avrdude: writing lock (1 bytes):

Writing |                                                    | 0% 0.00s ***failed;
Writing | ################################################## | 100% 0.17s

avrdude: 1 bytes of lock written
avrdude: verifying lock memory against 0x3F:
avrdude: load data lock data from input file 0x3F:
avrdude: input file 0x3F contains 1 bytes
avrdude: reading on-chip lock data:

Reading | ################################################## | 100% 0.02s

avrdude: verifying ...
avrdude: verification error, first mismatch at byte 0x0000
         0x3f != 0x00
avrdude: verification error; content mismatch

avrdude: safemode: lfuse reads as 0
avrdude: safemode: hfuse reads as 0
avrdude: safemode: Fuses OK

avrdude done.  Thank you.

All the fuses are set as 0x00, but when it is tried being overwritten, it results in writing failure.
But the thing is: with the same chip connection i was able to burn bootloader on the chip. I have two atmega and both of them are behaving in the same way.
One more thing: When I remove the mosi miso sck connections (only arduino's 10 is connected to reset pin of target atmega-pin 1), the same error comes out; seems no connection are there between atmega's 17,18,19 and arduino's 11,12, and 13. However i have checked the connection atleast 100 times, even with digital multimeter, and they are fine. To disable auto reset on serial connection on arduino, i added 10uf between pin-1 and ground, and 110 ohm between pin-1 and Vin. Also for the target atmega i have added a 10k between pin-1 and Vin. I am not able to figure out why device signature is coming as 0x000000. Did I brick the chip. And if it is bricked, what wrong i would have done. I need to know this because if i buy new costlier chips (atmega328) i should not damage the chip.
Please help.
Thanks in advance.
Debojit

debojitk:
To disable auto reset on serial connection on arduino, i added 10uf between pin-1 and ground, and 110 ohm between pin-1 and Vin. Also for the target atmega i have added a 10k between pin-1 and Vin.

You should not be connecting to Vin. Vin is NOT 5V. You should be using the 5V pin for pull-up resistors.

Hi hiduino,

hiduino:

debojitk:
To disable auto reset on serial connection on arduino, i added 10uf between pin-1 and ground, and 110 ohm between pin-1 and Vin. Also for the target atmega i have added a 10k between pin-1 and Vin.

You should not be connecting to Vin. Vin is NOT 5V. You should be using the 5V pin for pull-up resistors.

I mean 5v input only, not vin.
By the way I am powering the arduino and the target atmega both with computer usb power. Is this a result of lack of power.
I am having a 9v 500ma adapter. with 7805 would it be sufficient.
Should I go with parallel programmer.