mrchri5,
You have the basics correct. I would suggest one thing. On the mods I did, after breaking the bulb and removing all the glass I soldered the two wires. Now re-install with the lamp holder and screw that down tight.
You will now notice the wires are the topmost exposed part and the spring loaded center section protrudes past the opening.
Pushing the aluminum plate down will squish the two wires. I added a little spacer between the two wires so that the aluminum plate pushes against the little spacer.
This may not make sense and I may not have written this very clear, but, take a look at it and see if this makes sense.
Also, for better heat transfer use a wire wheel on the dremel or something like that to remove the paint on the inside of the barrel where the aluminum plate makes contact and use thermal grease or thermal epoxy when you insert the aluminum plate. This will ensure the heat is transfered to the body of the mag light and makes a huge heat sink.
Optimally to get the LED at the focal point requires finding the focal point of the reflector.
You can use almost any object such as a ball point pen. Hold the reflector so you are looking into it and from the backside insert the ball point pen or object thru the backside. Now look moving the ballpoint pen forward/backward till the whole reflector shows the ballpoint tip. Note where this is since it is the focal point and cut the reflector back so that the LS when pressed into the refector is sitting at this focal point. I believe this to be the correct alignment procedure for getting the LS at the focal point of the reflector. I'm not an optics person so if I'm wrong then someone can correct me.