I used my arduino mega2560 to bootload the atmega8.
Okay... so you used the Arduino as ISP? Which board did you select (i.e. which bootloader did you put on the ATmega8?)?
I made some pictures but i don't know how to upload them here.
The little arrow with the orange text "Additonal Options..."
CP2102 USB to TTL Converter Module which i bought from here:
Cool, at least this CP2102 has the DTR/RST broke out. Did you install the driver?
Did you put a 0.1uF capacitor between RST on the USB2UART and pin 1 on the Atmega8? This allows the auto-reset, other than that, you will have to use the reset button just before the upload (when the sketch size appears).
is it possible I somehow burned out my atmega?
It is always possible 
But I do not think we can make that determination, unless you have already release the "blue smoke" from the chip.