1. The Chanukah lights must be kindled in the location they are meant to remain. If, however, one kindled them indoors [in a spot not suitable for Chanukah lights] and then took them outside to where they belong, the person hasnotfulfilled the mitzvah (Shulchan Aruch674:1).
2. The Chanukah menorah must be set down on a surface before kindling them. One who kindled the Chanukah lights in a location that is halachically suitable for them but was holding them in his hands, did not fulfill the mitzvah. This is because an onlooker who sees this will think that the one lighting is holding the lamps to illuminate the area for personal use, not for commemorating the miracle (ibid.).

