We study the entanglement dynamics of a system consisting of a large number of coupled harmonic oscillators in various configurations and for different types of nearest-neighbour interactions. For a one-dimensional chain, we provide compact analytical solutions and approximations to the dynamical evolution of the entanglement between spatially separated oscillators. Key properties such as the speed of entanglement propagation, the maximum amount of transferred entanglement and the efficiency for the entanglement transfer are computed. For harmonic oscillators coupled by springs, corresponding to a phonon model, we observe a non-monotonic transfer efficiency in the initially prepared amount of entanglement, i.e. an intermediate amount of initial entanglement is transferred with the highest efficiency. In contrast, within the framework of the rotating-wave approximation (as appropriate, e.g. in quantum optical settings) one finds a monotonic behaviour. We also study geometrical configurations that are analogous to quantum optical devices (such as beamsplitters and interferometers) and observe characteristic differences when initially thermal or squeezed states are entering these devices. We show that these devices may be switched on and off by changing the properties of an individual oscillator. They may therefore be used as building blocks of large fixed and pre-fabricated but programmable structures in which quantum information is manipulated through propagation. We discuss briefly possible experimental realizations of systems of interacting harmonic oscillators in which these effects may be confirmed experimentally.