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By martinayotte
#37991 Real voltage translator are done like the following :
Image
There are existing modules that provide 4 of those channels into a single PCB for breadboard.

Also, there are some people that use simple voltage divider done with 2 resistors, 1K with 2K for example, only to drop the 5V TX voltage of the Arduino to something around 3.3V on RX side of the ESP.

For connection of TX/TX - RX/RX vs TX/RX - RX-TX, it all depends to which devices of the Arduino board you wish to talk, to the USB-Serial or to the ATmega328. For UpLoading firmware into the ESP using the USB-Serial, I think you pinout is right. But if you wish the AT328 to talk with existing AT Firmware of the ESP, you need to reverse the RX/TX.