CJ, I have a .204 Ruger (#3 contour BBL), built on a Rem. 700 Action and a 20BR (HBR contour BBL), built on a Borden ALPINE action: both feature PacNor barrels: respectively, 1:12" & 1:11". Both barrels shoot the 39/40 Gr. bullets well enough for hunting, but the 1:12" (.204) groups tighter using 32 Gr. Hornady V-Max; for the 20BR, I'm going with 40 Gr. Bergers.
Since you know a WORLD FAMOUS smith, I'll advise you to go with one of the following: 20 Tac; 20 Practical; 20 BR - depending upon which bolt-face you have or, want. With bullets seated out to contact the lands, the .204 case is too LONG to work through most .223 length magazines. The SAAMI spec. freebore length is a WHOPPING 0.100" !! Consider this: with a Hornady [40 Gr.] factory load, and a custom ZERO freebore reamer, featuring the customary 1Deg., 30Min. lead angle, the bullet will still be 0.050 OFF the lands!! So, when the bullets are seated out for land contact, they are too long for most magazines - especially clips. The 700 feeds them well. Being based upon the .223 case, both the 20 Tac. and Prac. avoid this issue - Redding offers dies for both . . . and both deliver full .204 performance. And, LAPUA brass is available. For any of the above, I'd opt for not more than 0.030" of freebore, whic accommodates keeping the bullet base in the case neck.
With 32 Gr. bullets and Hogdon BenchMark, the speed-limit for my .204 barrel is right at 4150 FPS; the 40 Gr. bullets, propelled by Win. 748, are limited to just under 3900 FPS. The 20 BR is delivering a solid 4100 FPS using both 40 Gr. Hornady V-Max and Berger 40 Gr. BT - this via a "case-full" of Win. 760. Since these were built for speed, I sacrifice the BR type precision for solid .5 MOA five-shot groups: at a measly 3700 FPS, the ALPINE/PacNor/Berger [20BR] rig delivers sub .3 groups . . but, that's not why I built the thing! ;)
Although the #3 contour .204 PacNor shoots very well, I won't build another with anything under a #4 - I just don't care for the wimpy appearance of the factory weight tube.
Put REO on it right away - then let the fun begin! ;) RG