Junkbot tripod maker needs firmware so he can send his steampunk pirate ship to Burning Man

Andy makes and sells groovy scrap-metal light-up "tripods" that look like aliens; he uses the money to fund an enormous, ambitious steampunk pirate ship for Burning Man. The engineer who formerly provided the firmware for Andy's tripods has pulled out of the project and now he's desperate for technical help:

What we Need:
The physical design requirement for the PCB:
1-1/8″ x 2-1/8″.
Along the upper edge we need room for 8 thru hole RGB LEDs
An easily accessible programming header
A microphone to input sound
Powered by (3) AAA batteries (4.5v)
Controlled by a momentary Switch SPST
A single centered screw hole that can be tapped to mount the board to the back cover.
Use of the Atmel Tiny88 would be a bonus since we have a lot left over from the ship's construction.
A small PCB with solder pads for the switch (1-1/8″ x 3/8″)

Initial Software requirements:
Two software modes, the first would be color morphing of the 8 LEDs on two color channels, (e.g. four LEDs could be blue and the other four yellow)
The second mode would be sound reactive (turning on and off to the beat of the music and changing colors).

Tripod Help (Thanks, Todd!)