I know this has been posted by many people already on different web sites and forums. Still I am posting the Arduino (Atmega168) fuse bit settings, as it appears in AVR Stuido 4 programming interface:
Please remember the programming sequence:
Step one: Flash the appropriate boot loader
Step two: Set the fuse bits
Step three: Set the lock bits
I hope this helps. I myself looked for this information earlier and it was not easy to find them all together.