You can take a look at very powerful AvrCo Multitasking Pascal for AVR. You can try it at http://www.e-lab.de. MEGA8/88 version is free. There are tons of drivers and simulator with JTAG debugger and nice live or simulated visualizations of all standard devices (LCDCHAR, LCDGRAPH, 7SEG, 14SEG, LEDDOT, KEYBOARD, RC5, SERVO, STEPPER...).
