Well I have to say, this is pretty much the advice I was looking for. I had some trouble learning enough about dynamo lighting myself, and having everyone chime in with what lighting setup they like and why did the trick.

So I'll steer clear of sidewall dynamos and get a dynamo hub -- I see that the Shimano hub is just $100 and the specs are almost as attractive as the son hub. More importantly, it'll power the 6-volt german lights I'm after.

Now I looked at various taillights, and I settled on the only one I could find that said it was made to attach to a seatpost. It seems like almost every taillight out there is made to fit either on a fender or rear rack. Still, the B&M Secula doesn't seem like a bad choice to me. I might keep my led blinker as a backup, but I want to get away from relying on battery power.

I still really want that Edelux II, but if I go with a Shimano hub, I can get my budget down to about $400. Not so bad after all.