Let's Make Robots!

What is an ATMEGA328P

I'm about to start my first robot using Arduino, and I wonder what that long rectangular chip is. I later find out it is called the ATMEGA328P. What is it? Is it like a data storage for the code? If not, what does it do?

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It holds the code and does all the work. It's the latest and greatest (okay, it was last year's latest and greatest) 8/32 bit processor with flash memory on board. It's the heart of the Arduino and (with a few minor support components and a bootloader flashing) all you really need for an Arduino to do what it does.