I decided to use small, halogen puck lights for under my cabinets. I picked these up at Menards for around $20 I think. I love that these are small, blend in well, and they clip together easily. Also, they are dimmable which is a HUGE plus.
The pucks come with VERY tiny screws to secure them to the cabinets. I found this to be the hardest part of the entire project! Seriously, I probably dropped that darn screw 100 times. Picture this: I'm holding a heavy drill above my head, practically laying on my back on the counter, trying to balance this tiny screw...didn't go so well. Take my word and PRE-DRILL tiny holes. You will save yourself A LOT of frustration if you do this first. :)
Next, I drilled holes in between each cabinet to thread the cords through.
All of my cords plug in to outlets above the cabinets so I ran the cords up between the end of the cabinet and the wall.
For the tops of my cabinets I used rope light. I ordered mine on Ebay but I think you get get it at a lot of places. Make sure you get either the exact length you need or get the rope light that is cuttable. I didn't secure the rope light at all, just laid it up there. Oh and never plug your rope light in while it's all coiled up. I did and it all melted together. I had to re-order all of mine :(
I use a lighting control system called X10. I won't go into a lot of detail now (I'll write up a more detailed post at a later date) but basically each cord gets plugged into a module- pictured below.
Then I can control all of my lights by this handy dandy remote.
I love the way the lights look at night. These aren't the best pictures but you get the idea. :)
Disclaimer: I am not an electrician...this is just the way I installed my lighting. :)