Unity definitely works on AVR. It's been awhile, but I've used it for testing AVR code myself. It appears that you're building test code to run on the AVR directly. This isn't usually a good way to do unit testing (see this article: ). Plus, if you run on the host and/or simulator, then you can simulate a larger version of the same part and handle larger test cases.
Atmega's are small parts. You'll want to disable any features you're not using. In your case, things like floating point support or 64 bit numbers seems like a good place to start.
I don't work with the unity_fixture addon, so I don't have any advice for the way you're working with the code. Perhaps someone who uses the addon will jump on and have more specific advice.
Mark