I see no reason to place IC1 at 45 degrees.
If you straighten in up the connections to the USB and XTAL will be simplified.
I agree with moving the ISP to the left of the XTAL.
Thanks for the extra feedback, I have already created a couple of nodes base don this and sent them off to the fab house. Hopefully they work :-S
These are just prototypes of the concept so not the final design, once I have verified that they are all working as expected I will be removing the reset button, power led, PE6 led, and ISP header (move it to a surface contact only).
This should reduce the boards height by around 8mm so I can get it to around 15mm high and 50mm long.
Attached is the image of the copper layer sent to be produced, it has 4 boards panellised on it each with its own function. Actual size is around 23mm high and 50mm long each.
Next to get a solder stencil made up to help with the hand production :-D
I will post back with progress when the boards come and when they get assembled.