On each night of Hanuka, we light the shamash candle first. The shamash is the worker candle, and is used to light the hanuka candles. On the first night the shamash is lit, the prayers are said, and the first hanuka candle is lit. Every night we do it again, adding one more candle.
The Hanukah menorah is placed in window to announce to the world the miracle of the Hanuka lights. It is also a testament to everybody's right to religious freedom, and a commemoration of a rag-tag band of people who refused to give up, and fought an army until they had secured their right to their Temple and their religious freedom.
For more on Hanuka traditions (dreidls, latkes, etc.) and lesson plans, you can search through the Bright Hub Education site. I also encourage you to visit www.morim.org for in-depth discussions, information on Jewish practices (then and now,) and lesson plans. From the home page, hit the "calendar" link, then "December" and hit the link on the December calendar for "Erev Hanuka."