ok here we go...
LEDS: just a couple of words for leds, sickmods.net ... very cheap, free resisitors with every led. 100 ohm is what you need. you can buy wire from them also.
SOLDERING SUPPLIES: you can buy a soldering iron and solder at radio shack, try to get something like a 25 watt or so, so you dont burn yourself very easy.
PAINT: most people like krylon paints, which you can get at places like walmart or menards and stuff. i use a kind that is like a buck a can and get amazing results... but i would suggest for you to use krylon if you have the money. its not that expensive, but for me it is, if you buy over 20 cans a month.
TECNIQUES: befor you even pick up a paint can sand your whole xbox really nice, even the parts that are already smooth, because otherwise the paint will not stick to it very well. when doing this use very fine sand paper, so there arent big scratches, and it seems smooth. after sanding all the way, run your xbox under water and sand at the same time, and this will get your xbox to be very very smooth. take the time and money to sand, please... it will make a huge difference. ok when all sanding is done, but your case and that under water and make sure all the dust is off, and let it dry over night. now for the painting, you dont have to prime it, but use very very thin coats of paint, and let them dry about 10 minutes in between coats. this is another very important thing to do, if you want your xbox to be smooth. after your 4 or 5 coats is done, and you can see any of the black anymore...!!!!!! clear coat it!!!!! clear coat is a must, no matter what, because it keeps the paint from scratching off or anything like that. do several very small coats of this, and do them very small otherwise it will not turn out clear and it will turn out yellowish. now let it dry for 1 whole day and put it all back together, and walla!!!!! an awsome paint job. i rushed my first paint job, and it sucked, o if you dont rush it, please dont rush it!! then it will turn out looking very very very nice!

as far as the leds go, you just need to solder the stuff, and you need experience, so just practice on some old things that are already broken aready. i will tell you more laterif you want as far as the leds go, but i have already told you almost everything i know. my aim is mzrcracer45 just talk to me on there and ill tell you everything

well hope that helps! just remember take your time and dont rush!!!!!!
wojo