Ladyada writes: Running out of space in your big Arduino project? Good news! Finally, after months of backorders, one can now buy the latest improvement to the ‘ATmega8′ line of chips: the ATmega328’s.
The ‘328 has 32K of flash, and 2K of SRAM. Basically its got the capacity of an ATmega32 but in a slimmer package. These chips are notable for their ability to drop-in replace the ATmega168. So that means if you have an Arduino or compatible clone, it is a easy 2 minute swap.

If you have an Adafruit wave shield or GPS/datalogging shield, and you’re annoyed that the FAT16 libraries eats up so much flash and RAM, upgrading will definitely fix the problem.

There are 250 preprogrammed chips in the Adafruit webshop or you can get blank chips from Mouser (but be warned that they’re backordered till mid-December)