How many LEDs on lilypad

Yes I was hoping to power all the LEDs off the Arduino, but I suppose 20ma is too little power… So I presume I'd have to use some sort of transistor and external power supply? How do I get started figuring this out? Are there any tutorials? My application will be on a garment.
Here's a post of someone talking about hooking up 64 LEDs to her lilypad… Login
I'm a little confused as there seems to be contradictory information out there.