Hi Stev (& Jacques)
I changed the 68R's for 390R to help with 3.3V compatability (yep parts from the junk box, after Garrets suggestion of increasing the value, voltage divider may be better but bigger!) and then the device is recognised as CapsLocker then HID Device. Works now! I found some 300R SMD resistors for the final build and they too worked. And... I changed the 2k2 for a 4k7 as the 2k2 stopped my parallel port programmer from working.
Sorry, not familiar with ponyprog but see my other posts on fuse bits.
See if this makes sense:
FuseBit H = 1 (disable div/8)
Fusebit FEDCBA = 100001 (CKSEL=0001, SUT=10)
More information about formatting options