Ponyprog has a button called "Security bits". It doesn't talk about fuses. You also might need some understanding in binary and hexadecimal systems.
This link explains a bit (fuses and bits, hehe):
Programming AVR fuse bits – oscillator settings - Scientific, embedded, biomedical, electronics contents.
You might want to use hex-to-binary converter to be sure about which fuses to set. Please correct me, but I get that F8 stands for EXTENDED part, DC for HIGH and F7 for low.
- EXTENDED (F8) = 1111 1000
- HIGH (DC) = 1101 1100
- LOW (F7) = 1111 0111
Now every bit has a "name". These are listed in Atmega datasheet if I remember right. Ponyprog lists fuse bits with names like CKSEL3, CKSEL2, CKSEL1, SPIEN etc.
It might be better just to take a simple screenshot of PonyProg security bits window with correct bits set and put it here for everybody to see.