+1  A: 

SDCC is the one I usually hear about. I've not used it. http://sdcc.sourceforge.net/

Nosredna
+3  A: 

SDCC is quite good.

kotlinski
+9  A: 

Keil is what I have used with this microcontroller in the passed. They've got a pretty good set of tools. SDCC is also good and free

Steve Lazaridis
+2  A: 

One of the companies I worked for uses Keil. All the engineers seem very satisfied with the quality of the assembly code generated by the compiler.

Also, Tasking has some pretty decent tools, but we used it more for the 8051XA family.

DoxaLogos
A: 

Keil is provided by atmel and is one of the compilers widely used... being a student maximumof us into microcontrollers use Keil ...

Dharavk
+1  A: 

Keil is very nice but it limits the amount of code space you can use with the free version. I think the full license is over a thousand bucks which could be prohibative for a one man op. I have just started using SDCC for this reason (I like free things!) and the output isn't quite as pretty but so far it's working well.

Jordan S