This is a basic guide on getting started with node.js using express. You can use tools to automate the creation of express apps but I decided to do it manually as you get more idea of what is going on so if/when you encounter problems you have more idea than you would if you blindly used a tool.

create a new working directory

mkdir newexpress
cd newexpress

install express

npm install express
node_modules/express/bin/express
npm install

install handlebars for express

npm install express3-handlebars --save
rm views/*
cp -R node_modules/express3-handlebars/examples/basic/views/* views/

enable handlebars templating

edit app.js

add

var exphbs = require('express3-handlebars');

replace

app.set('view engine', 'jade');

with

app.engine('handlebars', exphbs({defaultLayout: 'main'}));
app.set('view engine', 'handlebars');

remove or comment out default routes

var routes = require('./routes');
var user = require('./routes/user');
app.get('/', routes.index);
app.get('/users', user.list);

add new routes

app.get('/', function (req, res) {
    res.render('home');
});

You should now be able to start the app with node app.
The example views are basic but you can easily add in 'partials' to extend layouts.

This can also be extended to include other modules like sass etc.
I personally have extended it to use grunt + sass + livereload just to make is easier for designing sites.

UPDATE: 22nd March 2014

I have now switched from express3-handlebars to express-hbs.