Hey Socialrunner,
I have read many threads on the P3D and the RCR123 3.6 volt cells work in all modes without problem. You need to have the PROTECTED version for safety if you are running two cells in series. It sounds like there are no problems with fitting - but I would buy a brand someone else has used to be sure. I plan on buying some to try.
I wanted to use one 17670 battery for convenience and the available power they have. Also, I feel better not having cells in series in the light. But the only 17670 cells that seem to fit after replacing the wrapper are the unprotected ones. Since it is unprotected, care must be taken not to overdischarge the cell and damage it. I have had very good results using one (for the short time I have had my P3D). Although it appears the two protected RCR123's provide similar results. So, I'm not sure what is a better soution, using protected cells in series or a single unprotected cell. I do know that if a cell is overdischarged you must be vary cautious when charging it back up. Its nice to have options though.
The Ultrafire charger is pretty good from what I have read. It has independant channels which allows one to charge single batteries and also allows each battery in a pair to be fully charged. I have not read any complaints about it. Hope this helps.