PCB ATMEGA. Please Help with AT90CAN128 Start UP

I have a problem getting my micro to run.

I’ve populated board with AT90CAN128 chip. (Left pin 1 unconnected, since it is not used on my chip) I verified that I get VCC and Ground on correct pins. I checked that my Reset is High, so I am not resetting constantly. (I used ZM33084 for reset circuit) I wrote a two liner assembly program to turn on LED and run it on STK501. LED comes on. I can read signature of the chip fine. I configured chip to run of an internal clock. I programmed my stand-alone micro with Atmel studio with NO problems. It still does not run. Chip is alive, I’ve set fuse to output clock signal and I can read it, but I cannot get my program to run (Just trying to turn Pin0 on PORTB on) Something tells me that my configuration is not right (I did not set correct fuses) but I can’t figure out what the correct setting should be. Can anyone, please, advise me on that?