Keith, understand totally. But to get a prescale of 8, bits 0 and 2 have to be "0". OR-ing bit 1 to a "1" doesn't guarantee the correct prescale value.
Saximus, I don't know if the other two bits are cleared elsewhere. I'm assuming they must be, or the programmer is assuming that since this line is in "setup()" that there has been a reset and the bits are always "0" after a reset.
I was only asking that as a general rule you can't rely on a bitwise OR to set multiple bits to a known state.
Thanks for the pointer to Atmel datasheet. I've been reading the clock/timer interrupt section and I see the bit names used therein, but I hadn't seen any Arduino documentation that explicitly said the IDE used the same names and values as the datasheet.
The relevant defines are in iom328.h (or the appropriate part specific one) - there's one such file for each supported part and it gets included by the compiler via a series of #ifdefs. That's compiler stuff, not arduino stuff.
The bit names are #defined to the position of that bit within the relevant register.