@Scout! - I thought about a dynamo very seriously and if go with anyone it will be the Lightspin. It has GREAT output (4.5watts) and is very efficient as well. It is not an internal hub but is one of the best I've seen. I too have thought about using it to power other devices.

For now though I have qty. 2 (3 watt) LED lights that take CR132R rechargable batteries. I use these on a few my bikes. There are about penlight size but 3 watt output with a high/low power setting. On high they run for just over an hour each. They weigh almost nothing and together I have 6 watts of output for almost exactly 1 hour and I can easily take them off of the bike and use them for repairs. They batteries are rechargable and they are very small in size so I can easily keep a few extra with me. The LEDs are made by Luxeon and are VERY high quality and rated for 100,000 hours. That is why I am in no hurry for using a normal halogen light on my bike yet. They have great light output and fit in my pocket when I leave the bike.

Here is the light I use on my bike. It is pretty good on its own but great in a dual setup.
3 watt Luxeon LED light

I love this next light. VERY small but bright. Smaller version of previous light but I ALWAYS keep one with me at all times.
Here is my 3 watt mini Luxeon "pocket light"

This next light I use a lot too. Big output but again 1 hour at max (5 watts) but also has flashing mode:
"Big Mama" 5 watt LED with great beam and 4 output levels

As for rack I may go with another Pletscher rack. I also have a pure seatpost mount rack (actually a few of them) that I bought at a local close-out store. If I go with my Thudbuster, the size won't matter. I will use the Dahon telescoping seatpost that then allows me to use a rack that will fit the 27mm diameter that is the upper part of the telescoping part which allows me to use a normal Thudbuster model.

@v1nce - last I read (can't find the source at the moment) the "Red Label" hub was about 3-4% better than the normal Nexus. So the efficiency would go from about 91% to about 93% or so. I don't feel any of the grinding I sort of felt in my other Nexi hubs that got better with time. This one started out better than my other ones that were already broken-in. It may not be as efficient as normal derailleur but it feels pretty darn close.

For me the best value of all this was I didn't end up with garage full of parts I wouldn't need later. I could have easily spent a lot more $$$ to buy the base bike and then upgrade later. This way I saved a lot of money up front by not buying 2 of everything such as chain, gears, tires, etc. I did spend more than I originally planned on but the end product was well worth the money in my estimation. I keep going out to the garage to look at it. It is still about 30 degrees out so I may put on my lights and go for a spin.