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Please see the attached schematic. The design needs to be changed slightly. I need someone to add the changes to the schematic and redo the PCB routing. Below is the list of changes that need to be made.
Here are the Major things:
1) Replace atmega8 with 40 pin atmega8535. Connect unused pins to headers.Also add a crystal for it.
***There is more space on the board now as you will completely remove the usbasp circuit. Leave only the ISP headers***.
2) replace regulator with MCP1702T-5002E/CB and change caps accordingly. Package SOT-89 (MCP1703) change the electrolytic caps with ceramic or tantalum. (Something smaller). use 10uF or 1uF.Or whatever. We can discuss that.
1) Replace power connector with a more common one, and reverse the polarity. No need to switch automatically. Add a switch to switch between power from external USBasp and the DC supply.
2)make some room between LCD and the parts above and below it. 1mm on each side should be enough.
3)the diode next to the power connector is too close to it. move it by 2mil to the right or somewhere else.
4)adjust LCD brightness with variable resistor instead of PWM.