Alan,
 
We use an observation hive, (3 or 4 frames mounted vertically behind glass, with a tube
through the wall to outside,) with great success.  A hive that small can get congested and
swarmy during the summer, though, so it needs to be observed often then.
 
There are also lots of ideas in the monthlies Bee Culture and American Beekeeping Journal.
(One by Dadants and one by A. I. Root Co.)
 
Good luck!