I haven't used IE since the AOL days.  Firefox and Opera all the way.

Yep, I'm getting the same thing.  Even on Cadsoft's forum, no one has posted since March..

A better place to this post would be in Product Design though.  There are a number of us who are experienced with Eagle to help out members in need.

Schematic should look like this

Would be willing to go in on a minimum of 5, maybe 10.  Would be willing to help with the hardware as I am not confident on the software.  PM me and we can exchange emails.

What else do you hooked to the Arduino?  Something is pulling to much current..

I don't quite understand what you mean by "Usually a 10uF and .1uF on the on the power supply", do you mean have 2 decoupling capacitors on the same power supply?

Yes, the 10uF is a polarized electrolytic type capacitor.  And the 0.1uF is common ceramic capacitor.  No reduce noise in the supply going to the Atmega chip.  The should be placed as close as possible to the '328.  One side going to the positive and one to the GND.  On the electrolytic cap, it has a positive and a negative side. You can find these caps at a local supply store or someplace like Ebay.  They are cheap enough to buy in bulk because they are used in almost every circuit.

http://en.wikipedia.org/wiki/Decoupling_capacitor

Usually a 10uF and .1uF on the on the power supply. 

A few questions
Are you etching this PCB yourself?
You stated that you will program the chip first then move it to the PCB.  I would highly suggest you put a socket on the PCB so you can remove the Atmega chip to reupload sketches incase you want to change something.

It is likely the loop is going to fast for the solenoid to keep up.

Code:

delay(100) // wait for a second

First: 100 milliseconds is not second.1000 is.

it remains same even after I turn off power & have to push it to seperate.

That's probably the solenoid's fault.  Seems there is enough power going to it for it to jam itself.  Either lower the power or lubricate the solenoid.

The Serial.print I put in program is not printing.

Is it printing anything? 

The date automatically updates when you save the file.  With the rest I just use the text command.

Interesting.

I don't have much experience with relays.  Check this link http://forum.arduino.cc/index.php?topic=167616.msg1248073#msg1248073 and also the replies after that.

Hmm, not sure why they have it going to +5V.  The Arduino's official schematic has it going to ground..

[$259]

Listening to the first video again, it seems to be indeed $259.

Ouch.  Seems steep.  I may just build my own..

The only thing I seen that was wrong was you had Aref going to Vcc.  It should be .1uF to ground.  I cleaned up your schematic.   If your still experiencing resets, it means there is too much current going through the Arduino.  You can put a small value resistor in series with IN5 to see if that's the cause.  You can keep going to a higher value.  If a 1K resistor still makes it reset, then your problem is somewhere else.  Recheck all of your wiring.

What sensor is activating the relay?  Datasheet?

I agree with AlxDroid, please don't stop!  There are hundreds of Arduino users that enjoy using your IDE.  Your installer is a little enhancement compared to other features your IDE provides, IMO.  I thought you were working on adding line numbers?  I would greatly appreciate that feature.