CFL's will work, I don't use them though. How many would depend on how long you plan to use them. If you plan to use them through veg you need more than if you just use them for seedlings. Keep the CFL as close to the plant as pobbable, within a few inchs.
The watering... IMO it's always better to water with more water less often. In the early stages the plants are spreading their roots looking for water. If they have all they need real close they don't need to spread as much.