Need serious help with LED + voltage problems

Oki here's my situation. I'm currently making a Beatmania IIDX controller, and I ordered LED microswitches from a certain company. The LEDs on the microswitches run on 3.2-3.8 volts per LED. I have 9 buttons (7 for gameplay, 2 for the start and select), and so they are all soldered to the PCB, and to each other.

This is the diagram i'm using for this project.

http://home.ripway.com/2004-1/54890/12.jpg

Now, there's a lot of things I need to know concerning the voltage and how everything should connect. I made this diagram after looking at another diagram that was made for putting in a light kit for microswitches on a pop'n music controller. It works the same way as a IIDX controller, but I'm still unsure. Now for the questions.

1) Since all LEDs are chained together does that mean my power source will have to be in the range "OF THE TOTAL VOLTAGE OF ALL THE LEDs" combined?

2) Previously, I connected all the lights together, which altogether their total voltage should be in the range of 28.8-34.2 I gave it a power source voltage rating of 34.5, tried 3 of the LEDs and they burnt out. I'm going to have the LEDs replaced, but they are going to be replaced with bulbs of a different voltage rating. 2 bulbs will be 1.7-2.4 volts, and the other bulb is 3.6-4.0 volts. Since these bulbs have a different voltage rating than the other lights, should they have resistors connected to them of some sort? I heard of using them but I don't know how they work.

3) If there's any connection problems that you see in the diagram, please tell me because I have to know.

I'll try to explain this but it'll probably be a bit scattered.

LEDs are current driven. Given too much current they will burn out. This is what happen to your first diodes. The notable property of a diode is that it acts like a short when connected one way, and acts like an open when connected the other. They arn't perfect however and you will always get some constant voltage across them when they are suposed to be shorting. for LEDs this is typicaly around 2 volts. If you connect that straight to a battery, the battery will try to shove as much current through that it can, and this burns out the LED. That is why you need a resistor in series with it, to limit the current.

Now to the power supple. Assuming a perfect power supply, no matter how many times you tap it, it will give you the same voltage and as much current as the circuit is made to draw (remember Ohms Law V = I*R). Batterys are not perfet power supplies but are probably close enough in your set up. LEDs are current driven devices if you recall. Therefore it isn't your voltage you need to control, but rather the current. A battery has an internal resistance that is always in series with a circuit. So if you try to pull too much current, the internal resistance will start to noticably drop your voltage. From the looks of it though, you only have about 9 LEDs. I've used a nine volt battery to light up a lot more than that. Now the reason you need so much less that with the light bulbs is that LEDs are low power devices (at least in comparison) and light bulbs need a whole lot of current to light them up. LEDs on the other hand can be made to be extremely bright on just a little bit of current. If you find that your batteries are dieing too fast, you might want to put another 9 volt battery in parallel with the other one (this is where you want to use 2 new batteries and always changes them together) or consider using an AC adaptor.