Thanks!
There are a few GCP's which are a lot smaller than this, but with some of the features stripped to save space. Zenloc's and Tchay's GCP's are some good examples.
There's probably more which I've haven't seen.
It does have a headphone jack, on the left side of the controller ports (3rd pic).
I used the original DD in this one, and it's pretty much impossible to slim it down regarding height.
It took some time to find a case which had the right height and overall looks, as the biggest criteria I had was an internal DD.
The Z-button is actually quite comfy, as your middle finger rests right on top of it when playing.
Chipping isn't really necessary unless you want to play games from a different region, or backups.
I actually cut out the shoulder button parts and glued them to the case, so no modifications.
At first I used a thrustmaster psone screen, but the image quality was horrible, so I bought one of
these.
I think you now get 2 screens instead of one, so you could sell one of.
Note that this one doesn't have an audio amp, so you'll have to get a separate one.
I don't have any picures of the controller switch, so a nice painting will have to do
http://img517.imageshack.us/img517/8932/namnlsic.png
If you're intrested enough, you can pretty much do anything.
I've always been into creating stuff and most of my experience comes from trying different things out.