Recessed lighting suggestions?

Question:living room + family room are 8ft tall. Want to have recessed lights. What is prefereed 4" or 5". Also where is the chandelier
preferred way of installation. Hall or Living room

Above I am planning on incandesencet and in office(office room separate) I am planning to use energy savers.

Please provide your feedback.

Thanks

Answers:
if the recessed lighting is for wall washing and is close to wall, i would use the 4", if is for general lighting then go with the larger 5" or even 6" round

the chandelier would go in the living room