Have you tried reading the 'Help' file? In your other thread, the one where you thought the AVR chip was damaged, because it would run... What was the problem? How did you get it working? Guessing it was when you switched to the internal clock. I use AVR Studio, so not sure what your check boxes denote, not too motivated to download the manual for Ponyprog to find out.
Anyway, AVR Studio doesn't allow you to set the wrong combinations of fuses, and warns you if you are trying to do something stupid, Pony might not.
Are you sure the crystal is good? Do you have the right capacitors for it?
AVRFREAKS is a much better place to find answers, it's free and a huge knowledge base. There are only a few AVR users here, and I'm no expert. I mostly use the internal clock, as I don't really need the precision. The few times I did, I looked at what other people did in their projects using crystals, and once a three pin resonator. I've even gotten hookup information off a PIC site (thanks Nigel).