The transformer should be in an accessible location. There should be a switch between the 120V line and the transformer. You really don't want to have the transformer being fed electricity all the time. Using the transformer as a junction box is not the best idea. In other words, probably no.

Don't get halogen, they are way too hot. And don't get pucks, they will leave circles of light on your countertops, rather than provide even lighting. Xenon strips are a better choice for more even lighting on your countertop. I am linking a recent thread that will give you helpful information. Here is a link that might be useful: Thread about Xenon Undercab Lighting from Lowe's

From one Bob to another, a few suggestions based upon my nearly completed landscape lighting project which involved (so far!) installing over 150 fixtures, mostly well lights rated for direct burial into the ground and using ALL LED lights, since #1 I'd need several 1200 watt transformers had I gone with non-LED due to the higher wattage and #2 I can only imagine what my electric bills would be, even though the lights are only on for several hours a night. I also learned later that LED is less susceptible to voltage drop, which was a major concern for me due to the long runs. I ended up using (2) pro grade, multi-tap transformers, (1) 1200 watt and (1) 900 watt and so far so good, it looks awesome and by using voltage drop calculators and then the correct size of wiring, multi-meter tests show I have little variation in voltage at the fixtures, whether its a few feet from the tranny, or 250 feet away. I also used flex pvc conduit to pipe everything, which had a local landscaper/landscape lighting "pro" literally laughing in my face at all of the trenches dug in my yard, as he uses a machine that simply pushes the direct burial rated cable into the ground, but my plan was based on advice from several SoCal landscape light pros who pipe everything for their often 6 figure jobs, which don't compare to the small peanuts installs we have here in WI. Now, your project is MUCH simpler, but still should have some planning behind it. A few questions for you: -Are you using LED or non LED lights? LED is less susceptible to voltage drop and with halogens, even your 7 lights if "daisy chained" will likely yield a difference in brightness where the first one from the tranny is noticeably brighter than the last, but if they're LED, you might be fine just daisy chaining them. -You said you had some 14 ga wire coming from the tranny, if you can run a T setup, and use more 14 and less 18, you're likely better off, but again depending on the LED question and small scope, it may not be needed, but honestly running a T setup shouldn't be too hard to do for 7 lights. -Lastly, IF your lights come with the Malibu style connectors that pierce the insulation to make their connection, everything I've read is to ditch them and use some type of waterproof connector. You can buy waterproof wire nuts that are basically wire nuts with a silicone gel inside to make your connections and won't be piercing the insulation, which makes NO sense at all when you think about it. Hopes this helps!

It should be easy. We have the transformer in an upper cabinet. Look at www.inspiredled.com