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I have played against DW but never build a DW army. I have access to any models I could possibly need, and time to finish painting them.
1750 points, costs from their codex, rules from sm codex.
(So cyclone gets 2 templates...)

How would you approach this?

Belial w/ LC + BCS w/ 4 TH/SS 1 LC/Cyclone & Banner
Librarian / Combi-Melta
3x 5 Terminators w/ Cyclones, one random chainfist in each
2x Dreadnaughts w/ AC
1 Land Raider Crusader

Belial, Lib, and Squad go in the Crusader. Two Squads DWA onto the board on turn 1. The last stays in orbit until they are reserved in. Dreads are your fire and CC support (dreads can sweeping advance). Crusader is a spear to be thrown. The DA lib is a beast compared to the C: SM one with I5 and three attacks.

You could pod the Dreads with MM's but you need force projection fast with DW. You can't be waiting around for them to show up.

Don't forget the apothecary, who goes really handy with TH/SS termies getting a 3+.

12thRonin's list is alright, and if you magnetize weapons for everything, you could have whatever weapons you want. The dreads really benefit from having 4+ cover hiding behind the land raider!

Which specific rules from C:SM does he allow?

Is it only SS and Cyclone? If not you need to check how he would rule the following:

Psychic Hood - iirc DA one has no range
Apothicary - DA's is different as well
Smoke Launchers

Basically does all the DA wargear now follow the SM rules or is it just specific items.

The list given is alright expecially at that points lvl.