You might know this already if you've got the parts, but from my expirience with the same hub (SunXCD 120mm), using a 7 speed cassette with one cog removed, it's better to take off some other one than the smallest. As the smallest has the spacer built into the cog itself, and the others are just made of plate with separate spacers, if the outermost cog is not one ment to be that, it's splines will sit at the edge and partly over the edge, on the freehub body, as the splines on that don't continue that far. So it will work, but it's more likely to mutilate the freehub, and you can avoid this by taking any other instead.
You might know this already if you've got the parts, but from my expirience with the same hub (SunXCD 120mm), using a 7 speed cassette with one cog removed, it's better to take off some other one than the smallest. As the smallest has the spacer built into the cog itself, and the others are just made of plate with separate spacers, if the outermost cog is not one ment to be that, it's splines will sit at the edge and partly over the edge, on the freehub body, as the splines on that don't continue that far. So it will work, but it's more likely to mutilate the freehub, and you can avoid this by taking any other instead.
The project is really interesting, subscribed.