Hello Cliff,
I have used them for several months now in my ARC LSHF-P and have had no problems. ARC warned against using them because at 4+ volts the unit is in (or close to) direct drive. Some of the LED's may not like that, and you risk damaging the converter board. Once the voltage drops below 4 volts, I don't believe there is any problem.
When I pressed Peter a bit more, he told me that there "might" be a problem with the cells "hot off the charger," and he told me they were better suited to the ARC 4. The discussion then changed to the low voltage protection offered by the ARC 4.
This is when we were testing the first batch of R-CR123's and were adjusting the chargers to put a full charge on the cells. By limiting the chargers to under 4.2 volts, he thought we could get away with it.
At any rate, with the cells charged at 4.195 volts they quickly drop below 4 volts as soon as you turn the light on.
I continue to use the cells in my ARC because I have proven them in it. I don't think there would be a problem using them in your light, but there is risk involved.
I suppose the question is: If it goes poof, can I get it repaired (or improved...)?
Tom