I have the e-Luminator light. I really like it. I use it with my Oberon cover. It attaches to the cover like a paperclip so your cover has to have a slot on the inside that it can slip into. I also have a light that is similar to the Kandle but a different brand from Target. It has adjustable width and works fine with the T1 when you clip it to the thickness of both the T1 and the cover so maybe the Kandle is similar.
I had the lighted cover for my 505. I don't think it would work very well with the T1 because the height of the ereaders is different. Also it scratched easily which didn't look good when lighted. I didn't like it very much and never used it.
Hope that helps and you enjoy our new T1 & cover!