Wow, a question I can finally answer and feel I know what I'm talking about here ~lol~.
I've produced 1,000's of rats and mice, for my own collection in the past as well as enough to offer free food for friends and their collections.
I've used rack systems, automatic watering systems etc, and even aquaria like you're trying...
The best and easiest ways I've produced "feeders" has been with the use of "lab" type self contained units. These are small tubs with a cage type lid that holds the water bottle and food. Infact I found a great deal on them recently and bought 10 of them that I found in the classified section of kingsnake.com.
Definately you need to go with a breeding group... 1 male to 2 or three females in a set-up like I explained. When they start having pups, remove the male. The females when bonded will help take care of all the pups, but they will probably kill the male as they may see him as a threat to the pups. If more than one female has pups and they are bonded you may find that all the pups are nested together and the moms will work together.
I also found it better to breed rats and mice in different rooms than where I kept my herps. I don't know if the rats/mice can tell they are in the same room as the "enemy", thus keeping them from breeding as readily or not. I did notice that when I kept the rats/mice in a different room, they produced a lot more.
Darkness also seems to helps a bit, I kept my rats on a shelving system in a darker corner of a spare room I had only letting them have ambient light.
As far as seeing them "breed", I wouldn't worry about that. Breeding only last 2-3 seconds, it's literally a "wam-bam-thank you ma'am" event. It took me longer than that to type than it does for them to breed.
A good diet is the last thing I'll discuss....
Plenty of people breed rats/mice only using cheap dog food. This is fine, however avoid any dog food with red dyes, this may be harmful to your herps. I personally only use lab rat diets such as "Harland Tekland" etc.... I think it's better than just plain ole dog food. Also don't let them get too fat.. Feed them yes... Way to fat and they won't produce.
I hope this information helps.
Happy Holidays,
Jarrett