Funny you should ask this. As you'll see from other posts I'm adamantly opposed to recessed lights. The only time I ever installed them was in a room with very low ceilings - I figured it felt closed in enough already. Even there it was a huge mistake. The shadows were even worse than they would have been with a higher ceiling.

I'd suggest a bright white ceiling and cove lighting. T8 or T5 fluorescent strips are good for this. Supplement with table and floor lamps.

Is this a kitchen, bath, bedroom or?

With a 7 foot ceiling your choices are limited. Six foot adults are close to any surface mount. For other than a bath I would recommend spots using cfl's.

Ooops... To be clear I should have said dimmable cfl floods in cans.