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Pretty sure its not legal to convert flareguns to fire live ammo. I know they sell the inserts, and the inserts are not illegal to own by themselves.
Those milsurp flareguns are pretty heavy compared to the plastic commercial ones. The ammo is also much larger, not sure the difference in performance.
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I researched this a few months back...here's how it works...
The insert CANNOT be sold WITH (or is it installed) in the flare gun. However, if you own/use them both together, it is completely legal. And he is correct, the inserts usually come with a copy of the letter from ATF stating their legality.
This is the one I was going to get...
Flare gun insert
However, when it came time to buy the flare gun, I discovered I could buy a 2 shot derringer, hi-point, etc. for cheaper. Back when the flare guns were under $30 shipped all day long it was a different story but I missed the boat...
-Emt1581