Hi there Greywolf...
1- as David said, 1-7 will do the heavier bullets better...I think original twist was 1:12 for 55 gr FMJ. 1:7 was for 62 + gr rounds. so there could be a happy medium, 1:9 was done so that the shooter could do both for the most part. if you are building a dedicated match gun for longer ranges, go with the 1:7. if you are just building a plinker/target shooting gun then go 1:9.
2 - 5.56 and .223 measure their chambers differently. you can safely shoot .223 in a 5.56 chamber but according to SAAMI yo should not shoot 5.56 (milspec NATO ammo) in a .223 chamber. It isn't safe according to them.
3 - I'm in Canada so we are not stuck barrel length issues. You guys have the restriction (unless you have the right licence - I stand to be corrected if I am wrong on this one)so go with the 16 inch. once again depends on what you want to do with it. close in work, the 14.5 is a little handier, 16 is better if you are going to move further out. accuracy and terminal ballistics are better when further out with the 16.
4 - hate to say this, but ...save up the cash and get a KAC FF RAS or ARMS FF SIR...they appear to be the best choices. once again if accuracy is an issue then the Free Float feature is a must.
5 - if you are getting a RAS of some sort, then why go railed G.B.? stick with front sight post and a flip up rear or something like the LMT SOCOM rear sight. the A2 type rear sights are good as they give you adjustablility and sturdiness (Like BM, LMT, DPMS BUIS) if you need small. then go flip up like GG&G, ASA, ARMS,etc.
I hope this helps ya out.
Ruff