uh...ebay is fine in general as long as you find someone with good feedback, and smd stands for surface mount devices.
justins right i buy from ebay and have had no problems, i also buy leds (3mm tho) from ebay and there located in hong kong and it arrives exactly as described. So i would suggest giving ebay a try
If you dont want to trust ebay, you can buy 0603 leds at
www.uniqueleds.com, I buy 0603 leds from them all the time and they ship fast. AS for those red leds yes they are the ones that you will be needing