I can't remember on the fuse settings, but it may have more to do with avrdude
than the actual AVR. avrdude tries to be smart when dealing with the fuses
at least from the commandline.
Something else about interactive mode on the dragon.
The way they fetch data on the dragon when you do a flash or eeprom dump is really dumb.
Its been a while since I looked at and I can't remember if was both flash and eeprom or just
eeprom, it but I think they ended up fetching a large block like 256 bytes
and then only use 1 byte of it. So it ends up reading the data many more times than is necessary
since it only uses 1 byte a time from the data fetched. They cause the memory dump to be really slow.
I looked at changing/fixing it but the issue was the needed byte count was not available way down
deep in code and to fix it had massive ripple effects and required changing many functions
to support passing the byte counts around so I gave up.
On the case, if I were to do it again, I'd flip the board around and create a daughter board
with a 10 pin and 6 pin header coming out the flat panel and the USB going into the curved side.
I'm probably going to mod my to do this.
The draw back to my case is that you really can't do HV programming with it as it
requires using the socket.
Here is some other information about dragon robustness:
http://www.aplomb.nl/TechStuff/Dragon/Dragon.html
The more recent dragons, (the ones with mounting holes, which have been shipping
for quite some time now) aren't as sensitive as the original ones.
--- bill