ATtiny85duino - Tiny85 development board

If you have the money and inclination, consider doing this with surface mount parts. Atmel has parts with really reasonable pitches and 0805 caps and resistors are not at all hard to solder on either. Here is my first surface mount project, quite recent:

I am not sure if you would save a whole lot of space on that board, but on many you save a bunch of space.