I was considering that but it looks like the 168 will be a liitle too big. One of the SMT packages for the Atmega8 is only 6mm across. Probably 8 or 9mm when you include the pins.
I need to fit the entire board into a paintball marker grip, which also houses a 9V battery, lage Cap, and solenoid. I only have enough room for a low profile 15mm*50mm board. I should probably use an ATtiny that has an internal oscillator.