Like Kellen said, you should place them in series, not parallel.

The parallel resistors at the left both have the same voltage across them, that's the 5V from your Arduino. The fixed resistor has a fixed current, since the voltage is fixed as well, the thermistor's resistance varies, therefore so will the current. But the ADC in a microcontroller doesn't measure current, it measures voltage. And the only voltage this circuit has is the fixed power supply voltage, so you can't use that.
The two resistors in series at the right do the opposite. Since there's only one current path they both get the same current, and they may have different voltages across them. Say R1 is 15k\$\Omega\$ and R2 10k\$\Omega\$. Then the current it sees when you put 5V on it is 5V/(15k\$\Omega\$ + 10k\$\Omega\$) = 200\$\mu\$A. Then, according to Ohm's Law the voltage across R2 = I \$\times\$ R2 = 200\$\mu\$A \$\times\$ 10k\$\Omega\$ = 2V. You have a resistor divider which scales 5V down to 2V. More general:
\$ V_{R2} = \dfrac{R2}{R1+R2}\times V_+\$
If either R1 or R2 varies the output voltage will vary, and that's what we need. If you use a fixed resistor for R2 and let R1 be the thermistor, then a rise in temperature will cause R1 to lower, and the ratio R2/(R1+R2) will become larger; you'll have a larger output voltage at higher temperature. What will the temperature be? We can rewrite the resistor divider equation as
\$ R2 = \dfrac{V_{R2}}{V_+ - V_{R2}}\times R1\$
\$V_+\$ and \$R1\$ are known, the ADC measured \$V_{R2}\$, so we know the value of \$R2\$.
NTC thermistors have an ugly looking temperature characteristic. Datasheets for them may list a table indicating which temperature agrees with which resistance, so you could use that as a lookup table to find the temperature if you know the resistance. That's a perfectly good method, but it's a shame that we have to waste our microcontroller's memory on such a table.
In his answer Kellen links to another answer of mine, which shows how you can make the thermistor's curve more linear by using a parallel and a series resistance, so that the temperature can be approximated over a specific interval by the function
\$ T = a \times V_T + b \$
The coefficients depend on the type of thermistor, and the values of the two other resistors. In the linked answer I calculated them for another thermistor, based on a graph supplied by the manufacturer.