I have used it in a kitchen, I have tall 1200mm wall units that go right up to the ceiling about a one inch gap from cornice to ceiling, I also used it around the base of the floor units concealed under the cupboards against the kickboards. Looks fantastic I get a nice glow from both top and bottom, my floor tiles are dark grey granite unpolished so I don't get a mirror effect reflection just a nice soft glow.
I would suggest you leave enough space to be able to access and install the rope lights thats all, no real heat comes off them, you can also use any paint finish on your walls and ceiling just make sure it is a matt finish to give a glow rather than a reflected light.
This place is pretty good for rope
http://www.tlc-direct.co.uk/Main_Ind...hts/index.html
lots of different colours, if its for AV room maybe a blue or red just softly glowing might look good! I used white in my kitchen...they also do the corner connectors and joining pieces well worth it to get a nice even distribution.
good luck.....Kevin.