I have two questions:
- How can I add a horizontal line centered between two rows of nodes in Tikz?
- How can I change the vertical placement of a node to line up better with other nodes
A picture of what I mean will make this clearer:

The blue line indicates the line I'd like to add (it should be straight of course). Note the two red circles. Because of the subscripts the arrows don't "hit" them in the center of the X like it does for X_1, X_2, X_3. So how can I move these down somewhat?
Here's a minimal working example.
\documentclass[a4paper,11pt]{article}
\usepackage{tikz}
\usetikzlibrary{matrix,shapes,arrows,positioning,chains, calc}
\begin{document}
\begin{tikzpicture}
\matrix (m)[matrix of nodes, column sep=1cm,row sep=8mm, nodes={draw=none, anchor=center} ]{
\node [] {$X_1$}; & \node [] {$X_2$}; & \node [] {$X_3$}; & \node [] {$\ldots$}; & \node [] {$X_{\frac{n}{8}-1}$}; & \node [] {$X_{\frac{n}{8}}$}; \\
\node [] {$Y_1$}; & \node [] {$Y_2$}; & \node [] {$Y_3$}; & \node [] {$\ldots$}; & \node [] {$Y_{\frac{n}{8}-1}$}; & \node [] {$Y_{\frac{n}{8}}$}; \\
};
\path [>=latex,->] (m-1-1) edge (m-2-1);
\path [>=latex,->] (m-1-1) edge node [above] {$\ast$} (m-1-2);
\path [>=latex,->] (m-1-2) edge (m-2-2);
\path [>=latex,->] (m-1-2) edge (m-2-3);
\path [>=latex,->] (m-1-3) edge node [above] {$\ast$} (m-1-2);
\path [>=latex,->] (m-1-3) edge node [above] {$\ast$} (m-1-4);
\path [>=latex,->] (m-1-4) edge (m-2-5);
\path [>=latex,->] (m-1-5) edge node [above] {$\ast$} (m-1-4);
\path [>=latex,->] (m-1-5) edge node [above] {$\ast$} (m-1-6);
\path [>=latex,->] (m-1-6) edge (m-2-6);
\end{tikzpicture}
\end{document}
anchor=center(since then it defaults toanchor=baseformatrix of math nodes) and using themid west,mid eastanchors on the arrows. – Andrew Stacey May 01 '12 at 12:28