I spent about a month trying to get that programmer to work...
I'd suggest using a PIC microcontroller. They are more widely used, and easier to program. (take a look at Nigel's programmer compaired to that beast.) Or atleast look into the Atmel ISP programmer, it only requires one IC and a 5V supply.
With that being said...heres some hints on how to read that schematic...
capacitors 1,2,3, and 8 are bypass capacitors which are connected to the positve voltage and ground supply near an IC. If you download the actual board layout file, you'll see that they are placed very close to the IC's.
For wires labeled VDP, VCC, VUR, those are just the wire names and you'll want to connect them all together (that is, all of the VDP's together and the VCC's together ect.)
hope that helps.