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Im having a Librarian in my SM army at 1500 points, and i was thinking of custom builting him to be a marginally larger model.
he has the following attachments.

Terminator Armour w/ Storm Shield
Null Zone & The Avenger

I was thinking of doing a conversion of a venerable dread and scratch building arm with staff, arm with storm shield and legs.

what do you guys think?

First off, I wouldnt consider a dreadnought to be marginally larger then something in terminator armor...

If your looking to play it in friendly games, I'd play against it as I think it puts the model at an extreme disadvantage. In a tournement though, unless it looks awsome I'd be prepared and have the actual model with you.

If you want a nice terminator librarian but haven't got a librarian model try the Space Marine Terminator Captain.

Cut off his Storm Bolter and attach a Storm Shield (cutting off the right hand part on the shield) and voila.
One terminator librarian.

I would recommend the terminator librarian model, it's amazing. You could do a swap of the weapons, have the force staff in his left hand, pointing outwards and put the stormshield in his right. that would be a new twist.