I have a solid rack that has holes at the rear, so I took a 90 degree angle and attached it, then bolted an old bathtub wrench to that and then attached the lights. When I mount my trunk bag and panniers the lights are still behind the baggage.
My lights are a PB Superflash, and on the bottom is a generic flasher from Kmart or somewhere that for some reason is very bright also. Also, there is a MiNewt 200 that I put in flash mode occasionally, during times when driver visibility is in question. The most frequent use of the MiNewt is when I am riding directly into a sunset and I know the drivers behind me may be blinded by the sun - the MiNewt is very, very bright even under those circumstances. At night I move the MiNewt to the front handlebar.
Edit: I
never use the MiNewt at night on the rear