To your questions on the pic:
1. Yes, the best solution is a BuckPuck.
2. Yes, you can use both the BuckPuck for general LED driving and resistors to tune the colour to Orange in one setup. Actually it's the very same way US builds their sabers.
3. Don't know about that, sorry.
4. You still need a connection (and a resistor) between the + of the switch LED and the + leading to the main LED.
Here's a pic with the BuckPuck, FoC and all other things you can compare your diagram with:
http://www.saberforum.com/index.php?topic=8667.msg159971#msg159971