I'd definitely be into making the sheath myself. I've never messed with kydex before so I'm sure I'll have to scrap the first try before i get it just right.
Doesn't seem too bad though from your description. I might have to order a couple small sheets to play around with. Do you have a good source for it or should i just get some from knifekits.com?
for smaller pieces, knife kits is good. You can order one of their sheets or for a few bucks more, you can get one of their sheath kits (with the loop and rivets). The cool thing about kydex is that it's very forgiving.