In this video:
setting up a project for atmega2560 with the standard Arduino external 16MHz oscilator,
using ioport for setting the board LED,
using AVRDUDESS for writing the hex with the Arduino default bootloader,
UPDATE
The oscilator should be selected as XOSC16 or RC16 as in the NOR Flash video
Link to the project:
https://github.com/E-exp/Arduino_ATMEGA