I'm still planning, but I'm thinking of fitting 20W or 35W halogen downlights in groups of three from appropriately rated transformers. I think I might need to have up to 2m runs from the transformer to each light, or maybe more. So whilst 1mm2 should be enough, it might be worth going to 1.5mm2 just to keep the voltage drop as low as possible. I would prefer not to use single core to keep the wiring a bit neater, and ideally it would be fig 8 style cable like the speaker cable you can buy. In fact maybe there is a type speaker cable that would be suitable?
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