Choose a route for your decorative LED light rope. Mark this path on your ceiling with a fine point marker. Draw two lines, parallel to each other that are spaced just far enough apart to fit the rope. Start the path above an electrical outlet in the wall so you will have a convenient place to plug in your new lights.
Hold the activation button on your stud finder. Drag the stud finder slowly along your pair of lines. Make a mark on the ceiling each time the indicator light on the stud finder comes on and goes off. This will show you where the ceiling joists are.
Find the spots where the stud marks on the ceiling are close together. Cut through the drywall between each of these small gaps with your razor knife. Pull the drywall free of the ceiling in each of these areas.
Push the tip of the blade of your keyhole saw into the ceiling next to one of the lines. Push and pull the handle of the saw to cut through the ceiling. Cut along each of the lines on the ceiling and remove the strip of drywall between those lines.
Hold your LED rope in place inside of the groove you cut in the ceiling. Wrap tie wire around the LED rope at each joist to hold the rope in place. Cut the wire with your wire cutters to remove the excess.
Place a bead of caulk along both sides of the LED rope. Wipe each bead of caulk with a damp rag to smooth and compress the caulk. Let the caulk dry for 12 hours before using the lights.