Insulation options for a basement ceiling

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I used the encapsulated insulation all over. Around the recessed lights I put the insulation around 6" from the light. The 4" insulation doesnt completely seal off the joist area anyway, so heat generated by the light (mine are IC rated too) has some way of releasing.
Tom
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I spoke with the county inspection office today and they said that because the lights are insulation rated, the insulation can sit up against the lights. He recommended that I should remove the kraft paper so that it doesn't touch the light. I expect I will keep it 1-2" away from the recessed lights.
Thanks,
David
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Sounds reasonable, the only reason why I would go more is only because the area would somewhat be sealed off. Once the sheetrock is on the party is over and you'll never get in there again easily.
But its good practice to never actaully encapsulate the area with insulation.
Tom
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