Using an ATMEGA48V ?

I got a ATMEGA48V-10PI with some bare bones Arduino compatible PCB and was just wondering what board I would select when tying to put sketches & bootloader on it.

And looking at the datasheet, I should use a 8Mhz crystal rather then a 16Mhz?

You may be able to use it by selecting "Arduino NG or older with ATmega168" as the board. Keep in mind that the program memory is only 4K, out of which 2K is taken by the bootloader. (Compare that with ATmega328's 32K of program memory.)