Sheldon Brown's page on generator hubs, as well as Peter White's web site, both cited above, are excellent references.
I've got a Shimano 3N71 hub on my Globe commuter bike, and am really happy with it. One project for over the winter is to get a similar wheel built up for my Surly fast(er) commuter/fun bike.
I get good light to see by even at slow speeds... even in the pitch black corners of local trails and streets. And the nice thing is, that when your wheels are turnin', your lights are burnin'... you don't need to worry whether you remembered to plug into the charger last night, or especially this time of year, when you often need to run your lights both to and from work, if you've got enough left in the old batteries to make it home, much less run by the grocery store or wherever on the way back. Likewise for the randonneurs and long-distance riders, you don't have to worry about charging up, or finding a convenience store along the road somewhere with a sale on AAs or AAAs.
With either the Shimano or the SON hubs, you can't feel the resistance from driving the generator. Some of the older types where you have a rotor that runbs along the tire rim, yeah... that creates a lot of palpable drag, but the newer hub models you almost don't realize they're there.
I do carry a long a set of battery-powered lights for backuip, but in the year I've been running this thing, I haven't had to use them.
The one mechanical thing to look out for is the little blade plugs that connect the generator to the wiring system on the bike. These tend to be very lightweight -- Specialized uses 22-gauge wire on the Globes -- so you need to be very attentive when you remove the front wheel. I've had to re-wire mine twice now (Sheldon Brown's web page is the place to go if this happens to you) so that front wheel only comes off any more if the tire is flat...
Tom



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And it's not enough to bother me in any case.
Ours stay on for five minutes after you stop moving. They do noticably dim then and I don't think they are bright enough to change a flat. So I carry a small extra light if I know I'll be riding after dark. 

