Here are the several product pages we’ve looked at today for LED’s:
http://weekendhobbyist.blogspot.com/2011/01/arduino-lilypad-5×8-led-jacket-design.html
http://learning-arduino.tumblr.com/post/2579172342/arduino-led-bar-with-rhythm-detection
http://www.radioshack.com/product/index.jsp?productId=22128606