if you just want this effect, and only need 8-10 leds

there are simpler ways to achieve it without a microcontroller, namely a 555 timer and a bargraph driver (series number escapes me). the circuit you posted (there is a latter version with speed / function buttons) allows multiple effects to be programmed into the microcontroller. it's also expandable to run many many many leds. oh, to help keep the parts count down, if you're just running standard 5mm leds, the darlington array (IC3 with all the IN/OUT pins) can be eliminated. you really only need it for leds demanding over 50mA.
Come to think of it - I will be running a few panels in the next week or two for another project. I can make some of these for you if you're interested. You'll be on your own as far as assembly and programming, all I can provide is the bare printed circuit board.
how do you feel about all surface mount parts?
Putting together is no problem putting together bare printed circuit board....
I've never made my own printed circuit board.....
Well... having the flexibility of 8-16 LED would be nice....