I used the powder. I got that because I thought I recalled reading about better experiences with liquid. More searching leads to stories both ways.
I couldn't give you an exact temp. I was holding it just below boiling. Concentration was about what o2dazone posted once, about 1/3 packet of dye to 750mL distilled water. I throw about a teaspoon of salt in, as well. I'm wondering if maybe the Navy Blue is just a bad color to go with. The green isn't so bad, but has room for improvement.
Nice mouse, by the way. That does appear to have come out really well.