for Led lighting - its very focused light. This is why its so harst to look at them thru the trackball directly.
I recomend making a 'lightbox'. Make a small box like unit that holds the led out of view of the trackball (IE: do not place the led under the ball)...
The lightbox should be white inside - so that the light bounces arround inside of it. This will diffuse it - yet should be enough to light up the ball without that harsh beam.