A placed the setup like so: *~X1~
*=sensor
~=redstone (or repeater)
X=Solid block (stone)
1=redstone torch (on block)
The problem is that after connecting lights on the output side, the redstone torch turns off during daytime (which is correct, i tried to make lights turn on when it was dark), but the torch wont turn back on even when the block isnt powered.