Creating a New Project using Eclipse-WinAvr
Open eclipse.exe file from the eclipse folder.
.Make a New project by right clicking on project explorer and select new C project.
Type the project name.(eg:Led) and click next.
Set your microcontroller as atmega 16 and frequency as 4000000.
Again go to Project Explorer and right click on your project, and then go for its properties. Double click on C/C++Build then click on Settings.
Enable option Generate HEX file for Flash memory.
Then click on Optimization, select Optimization level and choose last option Size Optimizations (-Os) and then click on Apply button.
Click on AVR (your project >> properties >> AVR), then AVR >> AVRDude>>New button, choose your Programmer Hardware and give its Configuration name.(here the programmer hardware will be usb tiny).
Click on your project, select New C Source file
Give the name for your Source File with extension (ex: Led.c) and click on Finish button.
Type your code at the programming window and save the project.
Right click on your project and Build Project and to trasfer your code to Microcontroller click the AVR tab button.
Creating a New Project using Arduino-Software
Open arduino.exe file from the arduino folder.
Then from file menu select new write your code and selecte the board from menu Tools/Board/Heythi 40W/Atmega32.
Select the programmer from menu Tools/Programmer/UsbtinyISP.
To Compile the program click on the verify button.
To Upload the program select Upload Using Programmer from file menu