The arduino shield, purple circuit board with blue chip mount, is used to install the bootloader onto the Atmega328P adruino chip. The following provides more information about the shield:

http://www.instructables.com/id/Arduino-AVR-Progamming-Shield/

The following is the pin diagram of the Atmega 328p arduino chip

Schematic

http://arduino.cc/en/Hacking/PinMapping168

The bread board arduino circuit consists of a reset switch, a breakout board, two resistors, a resonator, and a red LED. The breakaway board is a Foca v2.2 board, blue in color, and has a mini USB port and a red LED indicator (http://blog.iteadstudio.com/).

The following are the connections betweeen the Foca v2.2 and the Atmega 328:

1. GND to universal ground
2. RXD to pin 2
3. TXD to pin 3
4. VCCIO to universal power

The following are the connections between the Atmega and the resonator

1. Center pin of the resonator goes to global ground
2. The two other pins on the resonator go to both  

The following are the connections between the Atmega and the switch

1. Connect lower left pin of switch to reset (pin 1) of Atmega
2. Upper left pin of switch to ground

The arduino shield, the purple ciruict board, is connected to the Adruino Uno via two wiring harnesses. The blue Adruiino Uno chip board is connected to a computer via USB. Before being able to upload any sketches onto the chip, the Aduino software must be installed, which can be found at this link (http://arduino.cc/en/Main/Software). After having a chip mounted on the blue chip mount and connecting the set of circuits to a computer via USB, open up the Adruino software. The circuits yellow pulsing LED shows that the circuit is connected and working. If the red LED is lit, then the connections are incorrect and must be revised before installing any information.  

The following settings should be set before applying a bootloader or sketch:

1. tools>Board>Adruino Nano w/ Atmega 328
2. tools>serial port>Com 6
3. programmer>Arduino as ISP
4. File>preferences>verbose upload (selected)

Now a sketch or boot-loader can be applied. To install these on the chip write the sketch code or choose from the FIle>Basic presets. Once the code is shown in the main body of the Adruino software, choose File>upload using programmer. Make sure no errors were present during the install by looking at the programming texts underneath the body of the program. Also check the red LED on the Adruino shield. If its on then something went wrong. If all is good then this chip can be dismounted and used in breadboard circuit. The arduino shield can be used to install sketches and a bootloader but only one of them can be applied at a time. To use the bread board arduino, the shield should be connected via USB first to install the bootloader. Then the chip should be dismounted from the shield and placed in the correct location on the breadboard. Then the breadboard is connected to the computer via mini USB from the breakaway board. Now the sketch can be added. 

Note: if the sketch fails to upload, try hitting the reset button on the breadboard right after the white-lettered coding ends and before the orange-colored coding begins. This timing is not always easy but keep at it and it should install successfully. 

This particular arduino has digital and analog pins. Analog pins are only input pins while the digital pins can be used for reading and writing. If an analog output is desired from this chipset, analogWrite() can be used to simulate analog output through the digital pins only. Using this command calls upon Pulse Width Modulation (PWM) to simulate an analog output. If a real analog output is desired, then a different arduino chipset is needed.