how to set the configuration and security bits for atmega32 for normal use,means student level not commercial product

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Any way you want to. There is nothing special about being a student unless I have been misinformed.

 

Hello,

From the question I assume you are talking about the software.
Wich software are you using?

Bertus

 

You don't have to do anything with the security bits. Programmers will erase them each time you reflash to program memory.

The setting of the configuration bits depends on your application and the schematic. What kind of oscillator do you have?

Can you post a schematic?