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atmega32u4 vs atmega328?

How am I limited (or not limited) by using ATMega32u4 instead of ATMega328 with my Arduino? I want my sketch to perform a simple "echo" of a code it receives, does ATMega32u4 allow me to do this?

Here is the datesheet of ATMega32u4:http://www.componentschip.com/details/Atmel/ATMEGA32U4.html