According to the traditional source for Jewish law rulings, the Shulchan Aruch or Code of Jewish Law, menorah placement should be either near the left side of the front door of the house or in a window visible from the street. The reasoning for the front door is so that when doing the ceremonial lighting, you are “surrounded by good deeds” since the mezuzah scroll (traditionally on the right side of every front door) would be behind you.
The basic concept here is that the entire purpose of the lighting is to not only memorialize but also to advertise the miracle done for the Jews by God, so the menorah should be maximally visible. With the fall of the Jewish State in about 70 AD, it became dangerous to light outside the front door or in a visible window because of anti-Jewish colonialists, so the inside-the-front-door rule was made. Some traditionalists still invoke that, despite living in places where they are free to practice Judaism. Others, especially in Israel, do light outside or more commonly in windows visible from the street.
Because of the requirement of being visible, it needs to be not too high above street level. The traditional allowed height is 20 amos, or about 20 feet. This applies only to free-standing houses- In a high-rise building, it would depend on where it is located. If there are other buildings of similar height nearby, so that their tenants would see the menorah if they looked out their window, the window is fine. If not, since it is too high from the street, it would be better to light at the door.
Since Jewish counting of days always begins at sunset, the lighting is done at that time. On the first evening, one candle is lit, on the second two, etc. Lighting should be done as close as possible to sunset, except when it is on a Friday evening. On Fridays, since the Shabbat starts at that time, one should light early, because lighting fires is prohibited on Shabbat. Conversely Saturday evening: Since Shabbat only ends after sundown, one should allow the Shabbat to end before lighting.
The style of the menorah needs to be such that when viewed one can tell how many lights are burning. Thus, circular or semi-circular menorahs should not be used. Likewise with menorahs that have each candle at a different height, since from a distance it looks like a few different menorahs in proximity.
Many prefer to light using olive oil, instead of candles. This is for several reasons: the actual miracle happened with olive oil, because oil will last all evening, and because it adds a spiritual flavor (and scent) to the house.
Of course, there is a very complicated and historical story behind this holiday, much more than just a miracle of oil lasting longer than it should have. I have written on that elsewhere.
