[MENTION=424080]scatterbunn[/MENTION], I tried one of those LED bulbs in an old light, and the result was very bad. The light doesn't emit in the same pattern, and the reflector is not designed for it.

I have connected modern LED dynamo lights to old bottle dynamos, and it works quite well. I've been warned I might burn out the circuits, and I don't know how likely that is. Modern lights have a "standlight" feature where the light stays on for a minute or so after you stop for a light. Very, very useful. Also, they have good voltage regulation, preventing burnouts. Plus, as you probably know, they're much brighter than the old lights. Not only that, the beam pattern is highly engineered. It lights up your path and not the trees and not oncoming people's eyes.

You don't need a special strip on the side of your tire. The dynamo might wear your tire out, but it might not. These things often go out of alignment. Be sure the axis of the dynamo points directly to the wheel's axle so it doesn't sideswipe the tire.