Can anyone recommend a good source for recessed lights. *Any special
brand/model? *Will I get any volume discount if I get so many lights?

Sticking with what JG said - I chose Halo due to the availability at
Lowes and HD, and the wide selection of baffles and trims. They also
sell a 6-pack and 12-pack at HD and Lowes that saves about a buck a
light (and they're only around $6.50 for the can to begin with). I
think there's also a 10-pack that comes with baffles that saves a few
bucks on the can/baffle combo, but you obviously lose the selection of
trims. Who knows though, perhaps an electric supply house could even
beat those prices, considering your volume.

As for the type of housing, also consider that you can buy an
incandescent housing and put in a compact fluorescent bulb. This is
what I did and it cost me half of what just the fluorescent housing
with integrated ballast would have cost me. Just something to
consider.