I got 50 10,000 MCD white superbrights from
this ebay store for cheap.
I bought one translucent white cutting board from a wal-mart.
I used two leds per button, in holes drilled straight through to the button. I originally wished to use the cutting board for light diffusion. I would have drilled the led receptacles only halfway into the material, so that the cutting board would have helped spread the light. I can't remeber if the glow was bright enough that way. .The only other reason I drilled all the way through was because my cutting board was just one piece per player and I could not drill them that way.
Here are my results (blue fxbuttons):

I included this shot with the trackball so you can gauge the high contrast of my camera. ITo the eye, the track ball and the buttons have a soft blue glow. The trackball has just one centered white led and seems evenly lit from normal view. Also you might note the rough edges on my middle button on the right. This is the shadow of my laminate that bothers me but noone else seems to bother to notice.
If I build another lit panel I will use plexiglass over art instead of laminate, so that the entire ring of the button can be lit without shadows.

I this shot u can probably tell that my leds for eash of my trackball buttons are on each side; left and right.
They look beter in real life; more similar to this photo:

For light angle the wider the better, it would seem.
Edit: I could not find my light angle, my leds are 5mm.