Hot air rework station. Got mine from ebay, XTRONIC-4000 series, maybe X-tronics, US distributor in the midwest. Also a nozzle for the specific chip size to be reworked, limits the airflow to just the pins area. I bought several different sizes from mpja.com, 328, 1284, 2560, TPIC6b595, 74HC595, whatever parts you are using.
Search "nozzle", couple examples:
http://www.mpja.com/Rework-Station-QFP-Nozzle-39in-X-39in/productinfo/15284%20TL
http://www.mpja.com/Rework-Station-SMD-Nozzle-10-X-10mm/productinfo/16123%20TL
Prices vary, larger packages seem to be less expensive. Easier to assemble?
Solder paste, Kester EZ256, Easy256, something 256. Leaded solder. EP256, that's it.
Stencil for your design - send gerbers to pololu.com, ~$30 depending on size.
Squeegee for applying paste.
Tweezers
Maybe heated tweezers for removing 2-pin devices.
Your design will include ICPS and/or FTDI headers?
If not, an Atmega328 programming adapter from HobbyKing.com - square adapter with 6 pins that you press over the '328, other end connects to an AVR programmer, program via ICSP.
(site not opening for me at the moment)
4 element, 1500W toaster oven.
Way less tedious to reflow than to be hunched over for hours soldering little pins.
Thermocouple probe for your meter. Use to monitor the toaster oven.
Manual method: places PCBs in oven. Crank on full, as oven approaches preheat phase back off and let it settle. ~150C. Wait 2 minutes. Crank on full, as oven approaches reflow phase backoff and let it settle. ~235C. Wait 30 seconds. Turn heat fill off, when temp drops down to 180, crack door, when it cools more open door fully. On mine you can hear the bimetal element click the heat off and on, so when I wanted if off I just back off till I heard it, if looked to be cooling too low I turned it back just a little.
Whole process only takes 2 to 3 minutes.
Do a couple of dry runs, kind of calibrate where you need to set your knob for the desired temps.
DO NOT EXCEED THE MAX TEMP of 250, 255C.
Many data sheets have the profile, some in words, some in pics.
For example, see a page 10 here
http://optoelectronics.liteon.com/upload/download/DS22-2000-223/S_110_LTST-C191KRKT.pdf
"IR-Reflow Normal Process"
or page 4 here
Need 4-element/ 1500W to achieve the ramp-up rates specified.
Can be an old one you have in your basement (what I use now) or find at a yard sale, can be a new for $50 from Target/Wallmart (what I have waiting in my dining room for me to add an automatic controller to - got a thermocouple, chip, bunch of parts, just need to get around to it).
High-proof isopropyl alchohol to wipe boards with prior to applying solder paste. I have 99% from local electronics supplier. 95% okay, doesn't dry as quick. Also good for cleaning boards that have been manually soldered.
0.025"/23 guage solder, I use leaded solder from MG Chemical. Purchased locally in 1lb spools.
http://www.mgchemicals.com/products/solder/leaded/sn60-pb40-4890/
Hope that helps.