This particular video shows a folded sky lantern. But most sky lanterns don't need to be unfolded. If your sky lantern comes with a circular ring on the bottom, just ignore the unfolding part of the instructions. You can find out more about these lanterns at http://blog.skylighter.com/fireworks/....
Lighting and launching sky lanterns that you buy at www.skylighter.com is something you should understand. You see these are very delicate little devices. Sky lanterns are made from fire-retardant treated tissue paper. The paper is delicate. When you open them up, be careful not to tear the tissue. Open each lantern up all the way. Make sure all the creases are completely opened up.
Your lantern needs every available square inch of space inside to be filled with hot air.
Now you will see a cardboard/fabric/paper waxed paper fuel pad on the bottom of the sky lantern, where the two wires cross. Open up the edges of the fuel pad, exposing the layers of paper inside. You do this in order to make the fuel pad easier to light.
Turn the lantern "sideways" so that the bamboo ring is perpendicular to the ground. Point one of the corners of the fuel pad toward the ground.
Then, with a lighter (preferably windproof), light the lower corner of the fuel pad.
Continue holding the sky lantern in the same position, and let the fuel pad get good and lit. Being careful not to let the flames char the tissue paper, turn the sky lantern over so that it is right side up. And just hold it while the rest of the fuel pad catches fire.
It will take 30-40 seconds or so for the pad to get going really well. Continue holding the lantern while it fills up with hot air. You will see and feel the sky lantern filling up with hot air. It will start to inflate and fill out.
As it fills, you will feel the sky lantern starting to rise. Hold onto your flying lantern a little longer. Test its flight capabilities now and then, and see if it is really ready to fly.
Then simply let it go. Your sky lantern will take off.
Do not release your sky lantern when there is any wind near the ground. You don't want it to fly sideways and start a fire.
If there is too much wind, the sides of your sky lantern will be blown in, and the lantern will not fully inflate. In that case, just let it burn out.
Once the sky lantern burns out, it will drop to the earth. The swaying and downward motion of the sky lantern will cause all the ashes to burn up and drop off. By the time the lantern comes back down, it will be just a paper balloon with two cross wires, and no fuel pad left.