Personally, I took the metal foil tape and taped up all the slots and openings on my can lights and then shot Great Stuff foam all around them, up to about 4" off the sheetrock, so maybe half way up the can. Then I buried the whole mess with a bit over 10" of blown in cellulose insulation.
As for the light bulbs, I pulled out the 60w equivalent 13w CFL's and replaced them with the 40w equivalent 8w (?) LED floods and called it good. They put off so little heat and are not used more than 3 or 4 hours at a time, so I don't think there will be any problem.
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