Not a step-by-step instructable, but the pictures give you an idea of what can be acheived with small scale LED edge lighting. This example Edge lit by a single multicolour changing LED and powered by 3x 1.5v watch batteries. The Chloe tag was engraved using a dremel and the Toby tag was engraved using a fine soldering iron tip, both achieve very similar results as I found that often the dremel would melt rather than cut its way through the acrylic.
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