I'm working on a few different Lilypad LED projects - a hat and a vest. They are inexpensive, bright and easy to use. Conductive yarn is best for clothing. I'm used to the more traditional old school - use thin wire, solder it to the LEDs and sew the wires in a few places to hold them in place, and pull them through the edges and along the seams. The conductive thread makes this much easier. They glow from 2.5 to 5.5 volts (5.5 is the max for Lilypad). That means you can charge them manually via a USB battery. They break easily and cleanly. If you don't want to hold them in place with conductive thread, taps can also be used as traditional solder joints.
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