If money practicality is an issue for you, then something like the Stevens Model 200 is really your first choice -- even if you have to buy a new rifle and rebarrel it to your favourite cartridge (though, you could just buy one in 7mm Remington Magnum for under $350 brand new, ready to go, and be done).
Therefore, doing this would be a labour of love, something to be unique -- and that's totally legitimate, believe me. But it is not the economy option.
If you're interested, here is one of my stories from a few years ago about a very special custom P17 in my possession:
http://www.canadiangunnutz.com/forum/showthread.php?t=218941
If anything, that rifle is shooting even better these days!
The 17 action is a GREAT action. The one benefit this action has, above all other military bolt actions of that era, is the ability to be chambered for real thumper magnums, like the Weatherby cartridges. You just can't do that with Mausers, Springfield, Lee Enfields, etc. This is why most guys who go the customizing route with these actions elect to put some kind of magnum on there -- even if it is just a plain old .300 Winchester Magnum (like I did in one of my projects).
As an aside, you can't put a full Weatherby long magnum cartridge in the Stevens Model 200 discussed above, so that is one advantage that the 17 has over this new cheap (and excellent) commercial action.
Since you're not hung up on the super magnums, there's no NEED to use your 17 for this hunting rifle, other than sentiment. Before you embark on this project, I'd recommend that you talk to the gunsmith first and get an idea of exactly how much this whole project is going to cost. And unless you are hung up on getting a full match grade barrel, you should definitely look into finding someone who has a permit to import the threaded & chambered E.R. Shaw barrels I mentioned in my first post. That alone will save you several
hundred dollars on the project and may not force you to pay a really noticeable penalty in accuracy for a hunting rifle.