My wife, my self and my two boys,ages about 13 and 9 were coming home from town. We turned off of No. Bay Dr onto No.Way, we saw what looked like two big flood lights about a mile away on top of the little montain we lived on North of North Bend. As we headed up the inlet my wife or I said something about them maybe doing some hoot owl logging (night logging for cooler and safer temps), and we assumed that was what explained these wierd lights, kind of like head lights, only much brighter.The inlet meanders east of Hwy 101 and we were heading right at the lights which were above this intersection in the mountain. At the bottom of this mountain, most traffic heads to the right, us included, and just a few people live to the left. So as we headed up the inlet and towards the fork in the road, we watched these lights which didn't seem to move. As we got to with in about a quarter mile, the lights disappered. We were talking about them and had just made this little turn to the right and were straightening out again when this round shape appeared right above us and I stopped the car and got out while my family were sticking there heads out of the windows. This is what happened. I was looking at this round shape with lights all around it and it made no noise. I guess it was 10 or 15 seconds when this craft made declining volume whoosh as it went up and away. It happened my friends and me being a huge skeptic has always put this in the fact column.