Is there enough room inside the iPad for smart cover magnets?

Thanks! are you trying this out with your own ipad?

Yep. The hinge works with N52-grade neodymium magnets; I installed the magnets in two banks of four with some superglue, and they're very strong even through the Al. However, the 3/8" x 3/16" x 1/16" thick magnets from K&J are a little wide. If I did it again I'd use 3/8" x 1/8" x 1/16" if I could get them and trust the quality. There's a crapload of Dremeling involved; I put a small crack in my bezel. You will also lose the use of two display clips on that side.

Also, the iFixit guide is totally right, you will kill the heck out of the display clips. I thought I'd maybe break two and bought a pair just in case; I'm buying a fresh set.

Working this was very squirrelly due to the delicate nature of the Dremel work (I only got through it after a bourbon milkshake), and I wouldn't do this as my very first hardware hack. But, I've got a red leather Smart Cover on my original iPad, which is what I really wanted as I prefer the form factor of the original.

Thanks for the info. The clips seem like a bit of a problem, but nothing too hard to do.

Sounds like a good, albeit hard, hack. Do you have any picture's you'd like to share?