Ken, since Jen has blessed the exposed wire option, I'd surface mount with wall-color-painted raceways. As for how to work around the chair rail, you could cut a small section out of it, shave/dremel a channel through the back so there's room for the wire to pass behind it, then nail the section back into place over the wire. Any small remaining gaps could be easily filled/hidden with wood putty or paintable caulk.