XM-3 might fit the bill, and it SHOULD be coming soon, though the waterproofness has not been tested. Also, I don't know if the body's HA-III, and it's about 7" long.
But it's cheap. /ubbthreads/images/graemlins/grin.gif
Otherwise, if you're going for the McCapsule and you buy it pre-assembled from Don, that's another $90 for the LED & McCapsule (but he's using a TW0K), and $125 if you want to replace the whole head so that you can get a nice PR head that includes a reflector. Otherwise, you're spending another $10 for a UCL and a SOX17A reflector so you can get something that'll do the same as a $40-50 Q-III.
$85 + $10 + 90 = $185, or about $10 less than a basic Aleph build which includes a 2-stage switch that knocks the living daylights out of a Q-III. /ubbthreads/images/graemlins/grin.gif
Otherwise, it's $25 for the McCapsule kit, another $16 for a SX1J LED, then the BadBoy.. I can't see this going for anything less than $65, like the BB sandwiches with Lux III emitters already being sold in the "drop In assemblies" section.
Either way, to mod it to outdo a Q-III, you've probably spent enough to buy THREE Q-IIIs at the same price, and enough to get a Gerber LX 3.0 - it's only Type II HA and is advertised as 'water resistant' while running on normal Alkaline or NiMH AAs, but it's only $45.96 at Meridian Tactical. Unfortunately, it's almost 8" long.
Being honest, if you want to use AA's, you're probably going to have to give up the 'shorter than 6 inch requirement", just because of the fact that you need to use a minimum of two AA's to drive the Luxeon properly. The Dorcy AA LuxI was probably the only LED light I know that's used a battery caddy for AA/AAA-type cells, which helped it reduce the length substantially.