The SMJLED (bare, not PR base) will work fine in the Gerber IU. What you will get, though, is a very wide flood, hardly any hotspot at all. This is due to the fact that the cut LED is made to work with the reflector, which the little cone in the IU, even when polished, can't do much to colliminate, you need a parabolic reflector for that. This is only slightly better if you use an uncut SMJLED, they don't seem to focus as much as a Nichia or the like.
After all that, I find it a great little light (or the same mod in an old model Dorcy AAA) for walking, where I don't want any hotspot at all, just flood in front of my feet.