it depend on what you want to do whit timer 1. in witch mode you want to work?for easy setting timer 1 use codevision AVR and codeWizard. then you don't need to work whit registers.
How to configure the timer 1 in atmega 32?. Available from: https://www.researchgate.net/post/How_to_configure_the_timer_1_in_atmega_32 [accessed Jun 2, 2015].