How do I design and install a chair rail up the stairs. The chair rail is 36" from the floor, but going up the stairs it seems to high.

Your angle will be somewhere around 40 degrees or so, and no 36 doesn't work on the stair way, and I can't remember what we normal set that at, but I do know I just eye ball it and see what looks good and go with that,
It also will help to chalk a line before you start running the chair up the steps.

You may also try and measure 36 from the nose of the steps strait up and see what that gives you.