Denise, I will clear this up for you. You do not need special insulation around recessed lights. If the ceiling apears to be in tough shape then you probably pass on the recessed lights. But if it is in decent shape this is doable. The key here is to be gentle with the plaster. Use the proper tools for cutting (not a sawzall) and you will be ok. You may have a little small patching to do around the lights. If so use plaster of paris not ready mixed spackle. If you are in Mass. I can do this for you otherwise keep looking until you find someone will. Good luck!