I would prefer to do the project with ATMEGA-8 as well. I currently
use Bascom-AVR to program with, but I am more of a hardware designer
and not a software programmer. But space wise for a 2 chip solution I
would go with serial ram and a Tiny13.
Projects I have done with the Atmels:
Repeater controllers based on AT90S2313, ATMEGA8, ATMEGA32.
LED reader board based on single chip 90S8515L
LED flashlites based on ATtiny12 and Tiny13, moving to Tiny25 when avalible.
LED dimmer module based on Tiny13.
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