If you need 3.7 volts then you will not get 5 Ah you will get 1500 maH or so with two lots of 3 in parallel. I don't think it would be too sucessful at all. Paralleling NiMH isn't a good idea anyway and the power weight ratio is crap comapred to Lithium polymer.
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oops. er, yeah more than 1.5 volts is needed.
custom lithium polymer is beginning to show serious problems with lifespan and replaceability. Given that a Z will run for a while off a 9 -volt (with a regulator, etc) surely there is a decent off-the-shelf option? Especially given that the newer Z's don't boot without a battery? It isn't so much that it is a better choice for "new" performance, it is a better choice for the longevity of the device, given the expense, obscurity, and mortality of appropritate lithium polymer batteries. power for weight means precisely nothing when comparing easily available (if heavy)power to a dead and irreplaceable (though light) custom battery.
If marc can deliver lithium polymers at a good price and a steady supply, that would be nice, but I'm afraid that we are going to be faced with a limited run and the same problem down the road.