Hi Michelle-First, it's important to limit the current to the LED. According to the spec sheet it is rated 40mA and has a 1.7 volt forward voltage drop. If you're using a 5 volt supply try about 140 ohms in series with the LED, which will give you about 30 mA. If you're using 12 volts, 380 ohms will be about right. This rwesistor is not critical as long as you don't exceed 40mA into the LED.For the phototransistor sensor, connect the emitter to ground and a pullup resistor between your supply voltage and the collector. Again, this resistor is not very critical. Try 1K to 10K ohms. If you power it up and connect a multimeter between the emitter and collector of the phototransistor you'll see the voltage move around as you move objects in it's field of view.Now- to connect the LED- since the voltage from the phototransistor is analog and won't give you a clean 0n-off indication, I'd recommend connecting a Schmitt trigger to clean up the output. You could either make one using a comparator or op amp and a few resistors, but the simplest way would be to use a CMOS hex Schmitt trigger, like a CD40106. One of the nice things about these is that they are happy with a 5 volt supply or a 12 volt supply. Connect the collector (and pullup resistor) to one of the inputs, and connect the anode of your LED to an appropriate current limiting resistor and the other side of the resistor to the + supply, and connect the cathode of the LED to the output of the Schmitt trigger.That should get everything working.If you're eager to see it do something and don't have a Schmitt trigger on hand, just take a 1K resistor from + supply to the anode of your LED. connect the cathode of the LED to the collector of the phototransistor. That should get it working, but you'll notice that the LED gets brighter and dimmer according to the amount of light that gets reflected into the phototransistor instead of giving a clean on-off indication. Let us know how it goes.-Rck