$W$ = $\begin{bmatrix} 1 & 1 & 1 & 1 \\ 1 & -1 & 1 & -1 \\ 1 & 1 & -1 & -1 \\ 1 & -1 & -1 & 1 \end{bmatrix}$. Use W to build an 8x8 matrix encoding an orthonormal basis in $R^8$ by scaling A = $\begin{bmatrix} W & W \\ W & -W \end{bmatrix}$ in the right way.
Am I wrong here, but is it not just this matrix beside each other 4 times? Doesn't that work?
No. First of all, $W$ is not orthonormal: its columns don't have norm $1$. Normalize it first. Call it $U$. Then consider $\left[\begin{smallmatrix}U&0\\0&U\end{smallmatrix}\right]$.