I haven't used the ATmega8535 myself, however, i can say that they
might be a little low on resources for using uIP. The smallest AVR
that i have used with uIP is the ATmega16, which has 16k flash and 1k
SRAM and i had to strip a lot of uIP down to get it going with a
usable application. With the ATmega8535, you are dealing with 8k
flash and 544 bytes of SRAM which, in my opinion, is not enough to run
uIP if you want to run any real applications. If you are using AVRs,
there are two projects which i found informative:
uIP-AVR, which is a port of uIP 0.9 to AVRs:
http://www.laskater.com/projects/uipAVR.htm
SPI2CF which uses uIP 1.0 on an AVR:
http://www.harbaum.org/till/spi2cf/
Hope this helps.
-Mark