I've just lit my tug with LED's. Used a 5v regulator so I can power them from the 7.2 boat pack or from a 9v battery. I filed down the tops of the LED's, then painted the 'back' and 'sides' of the mast head light, nav lights etc, white, to reflect light back in, then black, to look right. They work well, I have a 'distribution board' that has three fixed resistors and one pot to get the light levels right between amber deck lights, white floods for the towing deck, and the running lights. The Mk II version now being built has four variable pots.l'll also add in some miniature switches for each bank of lights, and add on extra towing and stern lights.
Andy