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I was looking into a similar thing except that I was going to go with 20 Vartarg and all the info I found was that it won't eject properly. So I went with a Savage single shot target action and removed the ejector. You will also have problems with the short case feeding from a mag. I found one guy who made up a mag to feed the short case, he took a cz mag for I think it was a 22 fireball and put it inside a savage factory mag. Here is some pics of what he did. I think he also shortend the spring on his ejector to make it work properly.
Won't be a target rifle, I'm aware of many .17 Rems that have exceeded 1500 rounds fired with acceptable accuracy. If it needs a rebarrel after 10 years, so be it. At least it would feed and eject properly as a repeater.