AWOL:
'm hoping this is drawn correctly,
you may want to check the diode orientation
Yes, I just flipped it because I thought it was wrong.
I'm sure the positive side is connected to my 5v source, via a resistor. Should I flip it back (on the drawing) or should I flip it on my Arduino?
Edit: So I think this should be correct now: 
Positive is connected to 5V, via resistor. And negative to my transistor.