Had a few folks DM me about breakdowns and how we set up the game so I'm just gonna comment in the main thread as well.
First off, the $1,000 and $5,000 chips are probably un needed. The $1-$500 chips represent about $45,000 in value. The 60 chips for $1,000-$5,000 are an additional $140,000 in value, this really isn't needed. In the games we play, we do use the $500 chips regularly, the $1,000 never. They are really in the set because I'd already be getting 1k chips and what other opportunity would you get to get a small count chip and I like the designs for them. They are also $4.50 at L9/10 a chip when the average is L3/4 so I don't want too many of them.
With Poker you have the bank, right, and you can play with the bank and then also use it for making change. With Craps instead you've got the players, you've got the house and then the bank. So in our example above where we have people buying in for $20 and getting $2,000 in chips we have 10 players just for easy math(on a real craps table you'd fit more players but we just play on a kitchen table sized mat). That's $20,000 in value. Now we also have 'the house' sitting on the other side. Normally what happens there is the host or the collective players over the course of time, build 'the house' for an equal value to the players. So the easiest version is that the host puts up $200 cash and has $20,000 in value as the house. The remainder of the bank is the extra $5,000 which is just change.
If you are familiar with craps games, the $1s and the $5s are used all the time for small prop bets even when you are doing like $25-$50 pass line bets and then you always need to be doing things like betting $24 instead of $25 to make the math work out. I'd lean a bit heavier to $1s but I've had sets with 300 of them before and found I never need that many. 200 of them is right there with a busy table deep in a roll and how many chips you want to have in play, certainly not less. If I was trying to support more players I'd immediately start with more 100s.
We've never played this before as $1:$1. That would just be insane to me. If the table was hot or cold the game would be over super quickly and the goal isn't to win money but to have fun and teach craps. Very quickly the players would bust or the house would lose a ton of money. Yikes. We've played this before $1:$10. We gave everyone $200 in chips on their $20 buy in which mirrors a lot how we buy into craps at a real casino. The three times we did it everyone was felted within 20 minutes and we reset the game.
So what we do is we give everyone $2000 off the $20 buy in, but we give them a $500, a bunch of $100s and then $25s/$5s and $1s and people are making like $5 or $10 pass line bets for most of the evening. This gives them a lot of action, a lot of chips out on the table without forcing them to play super tight. I feel like some of the folks who are good at introducing newbs to tournament poker also advocate giving them more little chips so they aren't super tight the entire time and what not.