What are limitations of using Atmega8

instead of Atmega328 as arduino's micro-controller, besides less memory ?

Compare pages 1 & 2, see if anything is missing you might want.
Atmeg8

Atmega328

One difference that may or may not matter to you is that the 8 has no pin change interrupts so you are limited to the two external interrupts this is easily missed when comparing the two - I know I missed it too late.

Duane B

rcarduino.blogspot.com

Thanks

Hello,

Internal voltage reference
atmega8 = 2.56v
atmega328 = 1.1v

regards