Electronic – AVR Time Delay without Arduino Libraries

I agree with zklapow but check the projects section on AVR Freaks too. That's how I learnt back in the day before arduinos. Also, you will almost certainly have to read the datasheet for your chip to get anything useful done. There are no nice functions that, for example, read an analog pin in because there are so many parameters that the arduino environment hides from you. Let me give you an example:

 int ledPin =  13;    // LED connected to digital pin 13
 // The setup() method runs once, when the sketch starts
 void setup()   {                
   // initialize the digital pin as an output:
   pinMode(ledPin, OUTPUT);     
 }
 // the loop() method runs over and over again,
 // as long as the Arduino has power
 void loop()                     
 {
   digitalWrite(ledPin, HIGH);   // set the LED on
   delay(1000);                  // wait for a second
   digitalWrite(ledPin, LOW);    // set the LED off
   delay(1000);                  // wait for a second
 }

is roughly similar to the following C (not tested):

int main(void) {
    // I just randomly picked pin 6 on PORTB, this may not be the same on an arduino
    DDRB = (1<<6); // set pin to output in data direction register
    int i; // have to do this outside the for loop because of C standard

    while(1) {
        PORTB |= (1<<6); // send pin 6 high and leave other pins in their current state
        for (i=0; i<10000; i++); // delay

        PORTB &= ~(1<<6); // send pin 6 low
        for (i=0; i<10000; i++); // delay
    }
}

Sure, there are delay functions in some libraries and there may be output functions in other ones, but get used to writing code like this. The only way you can possibly know what all this PORTB and DDRB stuff means is to read the datasheet. I'm sorry to drone on about this but not enough people realize that the datasheet is a goldmine for information.

The Arduino boards can be programmed in assembly. All you need is an ICSP Cable (In Circuit Serial Programmer) and the AVR toolchain (free from ATMEL) to write to the board. You then get the advantage of on board debugging.

As you suggested, you can just slap an ATMEL chip on a breadboard and go to town.

The kit you referenced looks like a great starting point. You can take the chip right off the board and stick it on your own breadboard (as long as it has correctly regulated power and you account for the clock).

EDIT: Apparently you don't need an ICSP to load assembly programs. See comment below for details.