Well now that it worked on the breadboard I decided it was time to Veroboard my design, mainly because I was fed up of the bits falling out when I moved it!
You'll notice some new components if you look closely :), these are for the red power indicator and a voltage regulator circuit to give me a nice 5v supply for all the logic and stuff. Sweet. It's still not finished as I have to wait for some PCB mount things like the battery holder, a switch and a 9 pin socket so it can simply be plugged in. Then I'll have to start moving my attentions to the prototype transmitter that will actually transmit data off the watch. I'm a bit worried about the size of the transmitter, althought I don't think it should be that bad... <fingers crossed>