I thought that the 'forward voltage' rating is the voltage required for the LED to begin conducting and outputting light.
Correct. Usually they give a min, typical, and max voltage value. This varies depending on the current being driven through the LED.
Say your LED has a min, typ, max of 1.7, 2.0, and 2.4v respectively. 1.7v could possibly do it, but you'll get very little current or light. This all depends, though, on the quality of the LED and it's manufacturing conditions (semiconductors can be moody). The more current that is driven through the LED, the larger the forward voltage drop will be.
Two important little charts are the Forward Voltage vs. Forward Current curve, and the Luminous Intensity vs. Forward Current curve. You can get some light being emitted at the minimum voltage, but it'll be very small.
Remember, LEDs are tricky things to fully understand (that goes with all semiconductor devices). The driver for the luminousity is the current, but you have to have a sufficient voltage applied across it to bridge the forbidden energy gap and get the ball rolling, so to speak.
But, as a rule of thumb, just put a current limiting resistor in series such that your desired current = (Vcc - Vled) / R. Hence, your Vcc should be greater than Vled. *Not* putting in a resistor is poor design, in which case your current will be limited by the natural resistence of the semiconductor and the connecting paths... which is tiny, hard to calculate, and not something that should be relied on for this application.
P.S. If you really want to get crazy, google around to see how LEDs can actually act as light sensing devices!