programming atmega chip
From Sparkfun


  This programmer works really well for
  ATmega168 and ATmega328 and should
  work with all the AVR micros supported
  by AVRDUDE. We've played a bit with
  the ATtinys but we cannot guarantee
  that this board will be compatible
  with anything but ATmega168/328.


From Ladyada the ATMEGA8535 is listed as being supported by AVRDUDE.

And there is a pinout for the standard ISP connectors and an example schematic on how to hook it up at http://my.opera.com/CrazyTerabyte/blog/2008/02/02/first-contact-with-atmega8-microcontroller-part-4

Page 2 of your data sheet shows you the pin out of the chip. You will need to hook up all of these pins: reset, sck, miso, mosi, vcc(power), and ground