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Why go to all that trouble? Kel-Tec now makes their PLR-16, a 5.56mm NATO (.223) gas-operated pistol that uses the M-16 breech-locking system and even takes M-16 magazines. It got a great review from John Taffin in American Handgunner--100-yard groups under 1". No NFA nonsense required. Sounds like just what you want. I want one...
I've had a PLR-16 for about a year and love it. It's reliable, accurate (sub 2" groups at 100 yds) and affordable. The base gun sells here for about $450 and fully tricked out with all the options from K-T, one will set you back about another $100-$150. I like it so much, I even made it my avatar and it's my SHTF/home defense weapon of choice
 

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