ATmega32A _delay_ms after IO calls
I would double check how the LED is connected to the ATmega32. If PA0 is connected to the cathode (negative terminal) of the LED then setting the pin to low (ground) would cause it to turn on and not off. This is refereed to as an 'active low' setup as the LED is active (lit) when the output is low. You can also have active low controls when using transistors to switch a load depending on how things are connected.