This is a fairly simple project for anyone with some electronic skills.
Plug this circuit into an audio source and the LEDs will blink to the rhythm of the music. All it is really is using the voltage from the audio input to activate a transistor and turn on the LEDs.
This is circuit is very customizable. The setup of the lights is really up to you. The main thing to consider when choosing layout for the LEDs is your audio source and the power supply you will be using.
For this particular one I choose to make it run off a 9v battery and use an IPod for input.