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[Breadboard][Atmega8] Need Feedback on Circuit Setup

I am not a newbie in microcontroller field. I have been programming them for some months. Though it is my first time building a circuit with microcontroller. I have used Arduino in past and never thought about the hardware till now. Below is a schematic i came up with after reading the datasheet, book and merging some arduino ideas. Let me know what i am doing wrong... I feel not at home with the inductor on the right.

ArduinoSchematic.jpg
 
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