Controlling 400 SMD RGB(255*255*255) LEDs with Arduino

I'm looking for a micro controller solution to solve my need to interface individually with 400 of the LED modules listed in my topic. Here is a link to more information about them: http://www.aliexpress.com/store/product/200PCS-5050-Ultra-Bright-SMD-RGB-LEDs-SMD-5050-RGB-whole-sales-and-Retail/602458_526626604.html

I'm planning to create an LED board that I'll be able to control with an arduino but I've never used one so I'm not sure what to look for specifically to support this kind of job. I would prefer to keep it under 5 square inches as I'm tight for space.

Thanks

Do you want ON/OFF control or variable brightness?

400*3 = 1200 elements. 1200/8 = 150 bytes.

Will the LEDs be in some kind of logical matrix? Like a 20x20 or 10x40?

I would like to have variable brightness along with variable color ( I think it's expressed as the same though? ). The LEDs will be aligned in a matrix. i'm not positive on the size of the matrix as it's designed to fit the LEDs in a circle. Every LED will be in a grid fashion though.

Edit:

If it helps, I'll be making my own spin on Deadmau5's LED head. Here's a reference with about the same pixel density that I want. The only difference with LEDs is that I also want to put them in the ears as well. http://www.youtube.com/watch?v=YnNRSipqMDU