In my opinion I would stay away for Model 1 Sales, My friend just replaced his upper with a model 1 sales upper and it did not fit right at first, very tight... he had to force the upper onto the lower, next it came with A1 front sights instead of A2, Next he sent back the A1 front sight to get an A2 replacement for it (and had to pay for it even though it was advertised as an A2 sight) and then they lost his money order for it and dicked him around for a month on it. The last time he called them on it they said that they still had not received anything in the mail from him, then later that day the front sight post showed up in the mail... Also, his upper will not feed all ammo he tries to use, it will not feed soft point reliable, and now it is having extracting problems on fired casings. I would look at J&T if I were you.
Now on the M4 or CAR style barrel, that is all up to you, I have had both and neither one outperformed the other.
Tools, for that look at the build it yourself forum on here and there is detailed building instructions that will tell you what you need.
On mounting gadgets, I mount my Surefire and my OTAL laser on my handguard rails. I see no loss in target aquisition. I have used this set up on the reflexive fire course and have had zero ill effects out of it. I mount mine on a YHM 2 piece rail system... Cost of rail $112.00 shipped. I mount my M68 on a regualr QRP mount with spacer, just like we do in the Army and it works fine for me.
And on the 5.56/.223 question... I would go with the 5.56. Look in the
ammo oracle and it shows the difference in the chambers of a 5.56 and .223 if I am not mistaken.
Good luck, just for S&G here is a picture of mine (I am very proud of it
) Let us see yours when you are done.