For the genuinely curious...
Aside from one requirement, there really isn't a tradition to the arrangement of how the candles are set up. Typically, however, there are 4 candles on either side of one candle that is set higher than the rest. This candle is called the Shammash. It is used to light the rest of the candles. The candles should burn for at least half an hour. If one of the 8 nights it falls upon Shabbat, then you light the Channukah candles before the Shabbat candles.
While the Shabbat candles are lit by the woman of the household, the channukah candles are lit by everyone as Channukah miracle was a gift given to all of us. This is a great way to introduce many topics of light and torah to the children. Things such as how Channukah takes place during the darkest time of year, and other light themes can be brought out... very interesting teachings with comparisons to us being the light in the darkness and the Torah being light unto the world, etc.
Each night of Channukah, another candle is lit. So the first night, you start with the Shammash candle and then light the first of the lower 8. The second night the Shammash is lit then the two of the lower candles... and so forth.
Immediately after the Shammash is lit, there are two blessings recited:
The first is a blessing over the candles-
Baruch atah adonai, eloheinu melech ha-olam, asher kidushanu b'mitzvotav vitzivanu l'hadlik ner shel hannukah.
Blessed are you oh L-rd our G-d, king of the Universe who has made us holy with yoru commandments, and has commanded us to kindle the light of Channukah.
The second blessing gives thanks for the miracles-
Baruch atah adonai, eloheinu melech ha-olam, she-asah nissim lavotanu ba-yamim hahem bazman hazeh.
Blessed are you oh L-rd our G-d, King of the Universe, who performed miracles for our ancestors in those days, at this time.
On the first night, there is a third blessing given as well. This blessing gives thanks for allowing us to celebrate this festive holiday.
Baruch atah adonai, eloheinu melech ha-olam, shehehiyanu ve-kiymanu vehigianu lazman hazeh.
Blessed are you oh L-rd our G-d, King of the Universe, who keeps us alive and in good helath so that we can be here to celebrate this festive day.
I hope this helps.
Shalom,
yafet.
) so I dug the wooden one out of the china hutch on Friday and I was so surprised to see that we had made it for the Chanukah of 2001! I don't know why I had forgotten that lol, but it was so neat to be able to talk about it with the children, and they all remembered making and decorating it. I'm so glad we made it when we did... I like having it as a family remembrance we are sharing. It may not be fancy (well, actually it's a bit sloppy 
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