Thanks for your replies..
I got a Freeduino with a Atmega-328 yesterday
Looking forward to learning and having fun with it!
I also got a breadboard, a bunch of LEDs , 7x5 LED Matrices, piezos for a drumkit, 4051s and 595s and an assorted resistor pack .
I managed to modify the default sketch so that it now blinks the onboard LED alternatingly with an external one.