Next, add the voltage regulator, DC power connector, and 28-pin socket for the microcontroller:
Make sure the notch in the socket faces the right side of the board, as shown in the silkscreen on the board:
Finally, add the headers. For the ISCP header, you should use male headers, so you can connect to an AVRISP programmer in order to bootload the chip. For the other headers, use male headers if you want to be able to attach to any Arduino shields. Otherwise, you can use female headers or screw terminals, whichever meets your needs.
Make sure to keep your headers aligned perpendicular to the board. It'll make fitting shields easier, and fitting the programming cable easier.
That's it! Now you're ready to bootload the ATMega8.