Lighting Lots of 1.2v Bulbs...or Bright LEDs

For a 5x5 matrix, I'd use a MAX7219 if I didn't want to mess with writing the multiplexing code. Or, to have the Arduino do the multiplexing, five pins to drive the columns, via some small transistors or a ULN2003, and five to drive the rows direct, with an appropriate resistor in each row line.