An Atmel ATmega8 running at 16MHz, pre-programmed with the Arduino® bootloader. A handy label is attached to show the function of each pin on the AVR chip.
The ATmega8 is actually perfectly adequate to run almost all the example sketches in the Arduino IDE. Unless you need to run very advanced applications, 8K of program space is quite adequate. For example, tachometer code that drives a 2x16 LCD display, uses interrupts, and "long" multiplication comes in at 2.7KB!
This chip will require the use of a 16MHz external crystal or resonator. A three-lead resonator is slightly easier to use since the two capacitors used with a crystal are eliminated.
For the absolute minimum of external components, check out the 8MHz version that does not need an external crystal/resonator: http://cal-eng.com/?wpsc-product=atmega8_8mhz
Programming can be done with an external serial device like our FTDIbridge, or by placing the chip temporarily in an Arduino board such as a Duemilanove or Uno.
Because this AVR is running at a standard frequency, simply choose "Arduino NG or older w/ ATmega8" in the Arduino "Board" menu.
The AVR will be pre-loaded with an Arduino 10Hz D13 "blink" routine, so you can easily check if your connections are correct! Note that the Arduino NG bootloader has a fairly long bootloader delay before running the user code, so be patient!