I've recently upgraded my home automation project with lighting control. I'm using a K8000 kit from Velleman connected to a parallel port on my Ubuntu laptop. The kit includes 6 DAC outputs that can be directly connected to relays for controlling the lights. I've chosen the opto 22 Model 240D10 which I picked up on ebay for $5 each.
I was holding out for a wireless solution, but just could not find a cost effective solution and finally decided to run control wire. One possible glitch is keeping the 110v insulated after connecting to the opto 22 relay. I've wrapped the relay with electrical tape, but suspect this might not meet local wiring codes.