In your module definition, you declared three 8-bit ports wire:
output wire [7:0] r,
input wire [7:0] x,
input wire [7:0] y
However, in your calling module, you declared three arrays with 1-bit widths up to 8 bits wire (see IEEE Standard for Verilog, 1364-2005, Section 4.9 "Arrays):
wire rbit [7:0];
wire onebit [7:0];
wire twocomp [7:0];
, , .
, , , , . , , wire :
wire [7:0] rbit;
wire [7:0] onebit;
wire [7:0] twocomp;
, , , , .