A large oval craft with four large (house sized) yellow lights coming out of the side.I was in a vehicle with three people other than myself, and they were taking me home. That was when we saw a very intense bright white flashing in the sky off to the distance about a mile from my house. We decided to go investigate, because we thought it could have been something going on at the regional airport, because it was in that general direction. However, we later learned that it was no where near the airport, which was still a good six or seven miles away from the scene. We got closer to the lights, and we were parked on top of a hill. Looking down from the hill we saw one very large craft that hovered very low. It was hovering right above a series of houses, and appeared to be almost touching them. We couldn't tell where the flashing was coming from, because it didn't appear to be coming from the craft. The craft was long and oval. From our vantage point, we saw four rather large bright yellow lights, each being the size of a house. We couldn't mak! e out the craft at first, because it appeared to blend in with the night sky. However, after looking at it for a few seconds we could make out the outlines of the craft, which I compare to trying to make out the outlines of the darker part of the moon against the night sky when the moon is either a "new moon" or a "crescent moon." I can estimate the size being close to that of a house, because of the craft's close proximity to several houses. We wanted to get closer to the craft, so we continued driving. We drove past a wooded area, where the flashing seemed to be coming from. It appeared as if the flashing was coming from forty to fifty feet within the woods. We tried to get closer, but took some wrong turns and ended up driving away from the scene. When we turned around to go back the lights had stopped flashing and the craft was no where to be seen. We then somehow got out of place and ended up about three or four miles east of where we were. The details following our si! ghting are still a bit foggy for me. I have driven past the lo! cation i n the day light and the night time since the event took place, and I can see no logical reason for the flashing nor the craft.