Measure the length of the area where you want to install the cove lighting. Jot down this measurement and keep it handy.
Cut 1-by-4-inch backboard to fit this measurement. You'll need several pieces of backboard to join together to cover the length of the wall, unless the area is quite short.
Cut 4-inch-wide decorative crown molding in the same length.
Paint the molding and backboard your desired color using latex paint. White is the most flexible choice, and it will help bounce the light. Allow the paint to cure according to the manufacturer's instructions before proceeding.
Draw a flush line 1/2 inch from the bottom of the backer board using a pencil and straightedge. Draw short, vertical lines every foot along the board so they cross the first line.
Glue small corned blocks on the backer board at each of the crossing lines, using wood glue. Position the blocks so they have a flat ledge on the top. Secure the blocks in position using a finishing nail on the top and front that goes through into the backer board.
Drill pilot holes into the backer board using a drill bit that is slightly smaller than the diameter of your screws. Space the pilot holes about 1 foot apart.
Note the location where you want to install the cove lighting by measuring down from the ceiling. Use a chalk-covered piece of string to create a flush line across the wall.
Hold the backer board so the top is flush with the chalk line. Drill pilot holes into the wall, through the backer board pilot holes. Use a drill bit that is appropriate for the type of wall you have, such as a masonry bit for brick walls.
Set the backer board down and drill the pilot holes with a slightly bigger bit. Insert a wall anchor into each pilot hole.
Mount the backer board into position by aligning the pilot holes in the wood with the pilot holes in the wall and driving the screws into the wall anchors.
Apply a dollop of construction glue to the bottom of each corner block. Press the crown molding against the glued blocks and secure them using finishing nails.
Lay cable lighting in the "V" form that you created with the crown molding and backer board. Cut the cable to fit when you see the scissors symbol on the light strand. You can also screw in extensions to make the cable longer.
Finish the cable lighting by plugging it in at one end of the wall. You can hide the electricity cord by using a cable raceway or have an electrician connect the lights to a light switch.