Jeff1500,
the metal flashlight body would be the easiest and best way to make this flashlight. The distance the heat has to travel to reach the body is not really that important as long as the contact is good between the heatsink and the body. If you have a plastic body with an internal heatsink, no matter how big of a heatsink you have, that heat still has to be transferred to the outside somehow, so eventually you'll still need to use the body as some sort of heatsink. Even if you drill holes in the body, it's not going to help that much with the heat transfer, unless you plan on using this only in a cold, windy, or possibly an underwater environment. The amount of air convection through the holes isn't going to help a whole lot.
Okay, now for the important information. If you're anything like me, you don't want to take the easy route, you want something that is completely handmade. Then your design should work fine, IF you're not going to overdrive the LS, and IF you have an internal heatsink. You probably think I'm an idiot because I just said that even with an internal heatsink you'd still need to transfer the heat outside. Well, that's still true, but since we're talking about a low power device, it shouldn't be much of a problem. The internal heatsink will keep the LS from overheating, and the power dissapation would be so small that you probably wouldn't need to worry about it. I don't think you'd even have to drill holes in the body of the flashlight, like I said, it's not going to make that much of a difference anyway.
So if you're looking to make a simple, effective conversion, use a Mag body. Physical contact with a metal body is by far the best way to transfer heat. If you really like the plastic flashlight idea, you're design should work fine. But I still don't understand why you need a battery stop. Even if you had a simple tube, wouldn't the circuit be attached on one end of it preventing the batteries from falling out anyway? Then you could just get a piece of pipe, glue the whole circuit/LS/heatsink thingy on one end, the get an end cap and drill a hole in it for the tailcap switch on the other end.