Check out the animated menorah I made:
It also got written up in the local newspaper: http://www.gazette.net/stories/12242008/germnew194621_32474.shtml
I have 2 LED's inside each "lightbulb" (1 white and 1 blue). Besides the Arduino, I used 2 TI TLC5940 LED drivers (those things are awesome, too!).
This was my first project with the Arduino - I'm telling everyone I know how cool it is.
Nelson Robin
www.MrBizTalk.com