Step 4: Cut and Strip
It might be smart to leave some of these LEDs in sets of 3 or four in case you need them for a later project that way - it saves time by not having to solder together strings of lights.
After you get all of the LEDs separated, you'll need to strip the sheathing off the wires.
A good rule of thumb is to strip off one half the diameter (ie the radius) of a penny. This will give you plenty of extra space for twisting, soldering, or what ever you'll be doing to the wires.
If you plan on using these on a breadboard, you'll either want to strip less off (see the next step) or solder on a solid core 22 GA wire.