Your decoupling capacitors need to be right next to the chip - best to place a 100nF (ie 0.1uF) or similar directly between pins 6 and 7, and another one between pins 20 and 22 (that's pin numbers of the chip, not the Arduino numbering). A 10uF or similar can be anyway on the board so long as it is present.
The values of decoupling capacitors are not critical - the proximity of the high-speed decoupling capacitors to the chip is the most important point.
You don't need a pull-up on the RESET line, there's one internally. However if you want reliable operation in high-noise environments (big motor controllers etc) it would be wise to add a 4k7 pull-up to the reset line.