Steve,
For the spread problem I aimed them at the roof of the lid. Provides perfect dispersion. No spotlights.

If I want a disco effect I rotate it so the LEDs point into the water. I just drilled 3/16th holes and then a countersink 13/16 holes partway in so the LED's protrude from the acrylic.
Haven't had a chance to use the Stars yet. I want to build an adjustable constant current source for them. Much easier to control.