Anyway - forget the Dragon, get some JTAG Ice MkII clone. I've got both, going to sell Dragon - don't use it at all.
But that's like saying to a basic car user, forget the VW get an Audi.
I'd prob. also sell my VW if i also had the Audi.
But that doesn't mean that the VW wouldn't be good enough for basic transportation.
The JTAG Ice MkII , can do everything a Dragon can , plus a bit more (some PDI/TPI).
It is is faster and better protected , but it's also 4 times the price. (If speaking about Original Atmel devices).
I'd still recommend a Dragon , to a new Atmel user.
1: It's 4 times cheaper (than an original MKII-ICE), and can do what the OP wants.
2: It has good support (users at avrfreaks.net)
3: It comes with a warranty , if bought through a local dealer
4: There is "Official" software support
5: It can do HV programming (if ever needed)
@OP remember that you can reuse all your Arduino hw. (boards etc) , when switching to AvrStudio (I suppose you will program in C).
Under the hood Arduino also uses avr-gcc and avr-libc.
So basically you are just switching away from all the "layers" that the arduino-libs add to the plain avr-gcc/avr-libc environment.
If you want to try AvrStudio out wo. a programmer , you could use AvrStudio to generate the code.
Anf then ... just as arduino does.
Use avrdude to program the AvrStudio generated hexfile into the arduino board you allready have.
/Bingo