Went through the same danged thing with my Kelly.
The Jazz's will work, but as you mentioned the nut needs to be opened on the B & A, Along with the peg being reworked to a larger groove.
Have you considered adding the .033 Flat (
http://www.juststrings.com/toi-jf34033.html ) to replace the G string and moving the others up a slot? Shame to waste a good B string though I know.
Your playing will be super slinky and light this way almost like classical cat gut or nylons. Some folks like it, others don't. I play rather light anyways and I'll admit, you can bend for what seems like forever and if you get used to it, you'll get spoiled. Expect a complete setup as being required with this though (Truss & bridge).
Most of your B's are going to need nut work anyways since they're usually up around .125/.135 ish.