Set up your CyberSource account. Login.
On the left nav click Account Management → Transaction Security Keys. Then click on the “Security Keys for the
SOAP Toolkit
API” link.
Generate a new key by clicking the “Generate Key” button.
Copy the key that appears (and download it for safekeeping if desired).
Login to your FoxyCart admin. Click the “payment” link under “STORE”. Set your payment method to Cybersource.com.
Flip to the Live Server radio button. If it's disabled you'll need to “Start your FoxyCart subscription today!”.
Enter your Merchant ID (which you use when you login to CyberSource) and the Transaction Key that you just copied.
Click the “Update Payment Gateway” button.
Get back to your CyberSource account. Click “Account Management” → “SmartAuth Settings”. Set your checkboxes to look like this:

Don't worry. FoxyCart always sends the CVN unless the customer is using a saved card (or it's processing a subscription). This is very common; the first transaction between your store and your customer validates using the CVN, but subsequent transactions validate using other serives (like address verification).
TEST. Your account may already be in test mode. Contact CyberSource support to make sure everything's ready to go.
TEST MORE. Test with a real credit card and make sure everything (all the way up to the money actually getting deposited into your merchat account) works as expected.