Soft glow i'd go with Cold Cathodes I think. LED lights that i have seen are so much brighter. Of course CC are not as flexible as a strip of LED's. You could use LED's but place them in places where you don't get the full brightness (like under the mobo  as some strips are pretty thin)

Do you have any pics with the side panel on? Might give a better idea of how they look. I think most people run with a side panel.

cdragonm

Soft glow i'd go with Cold Cathodes I think. LED lights that i have seen are so much brighter. Of course CC are not as flexible as a strip of LED's. You could use LED's but place them in places where you don't get the full brightness (like under the mobo  as some strips are pretty thin)

 
Hes right, cold cathodes for softer light, or LED's for my vibrant/vivid light. You can position your LED lighting so that it is pointing inside the case instead of in the window and such and it will drastically reduce the brightness and focus it inside instead of out. 
 
IMO you should get LED light strips and position them so that they are all facing inside your computer in some way that it wont be focusing much light through the side window. Cold cathodes are nice but like dragon said they aren't flexible at all really and they don't give off as nice a light. With LED strips you can position them so the inside of the case looks great without turning your pc room into a light show. 

" BTW I am having a hard time with this, because I spent quite a while in the past bashing on my friends who did this stuff to their cars. " 
 
Hahaha, unfortunately your not modding a 2.0 neon, its a PC! If done right, it can turn your neon into an audi r8 looks wise.
 
You already have the engine, now you need the appearance. 

I'm using a combination of my LED fans and a white NZXT LED strip. Honestly, I thought CC's were too bright which is why I went with the LEDs. The strip I'm using also has 3 intensity settings which is nice. Ive got mine set on the 2nd. The pics in my Mods Rigs don't really do it justice but you can get an idea of the coverage and intensity they provide from my pics (You might notice some familiar hardware in there ).
 
From the angle I see my case sitting at my desk, I cant see a single LED which was important to me. The mounting clips for the strip made it somewhat easy to aim the LEDs where I wanted them. Also, disregard that bracket you see in the product images. You can strip it down like I did and just mount it wherever you want, there's only 2 small Philips screws holding it to the board. It's just a matter of getting power to it after you mount it. I've got mine mounted in the top of my expansion bay area with zip ties (lol), you can't see it unless you basically stick your head in there and look up.
 
I could take pics of the others settings or something if you want.
 
http://www.amazon.com/NZX...=1309384425&sr=1-3
 
That's a red 2 meter kit, theres also 1 meter kits and other colors you can find by searching 'NZXT LED' and setting the filter to under $25.
 
 

+1 on LED strips or EL wire.
 
I prefer white light to illuiminate the interior of the case but whatever floats your boat.

I am new to this to but as you can see on the pics on my modrig, I went with white CCFL. It works surprisingly well! The LED are more of a discrete and bright lighting as opposed to the continuous soft glow of the CCFL. Stating the obvious here but at the end it is a matter of taste I guess.

What are CCs?

I have 2 LED strips, still have yet to install them after getting them at crazypc for $8.