Sounds like an awesome idea! I might start with mine (since the dash is somewhat stripped anyways) and see how it works, then move on to my wifes Burb. LEDs would be sweet too, but my electronics engineering is a bit rusty and I dont think I could easily put something together.
Ah, LED's aren't all they're cracked up to be. The only way they're really bright is with a nice formed lens; the silicon itself doesn't put out squat for light. The problem with the formed lens is they're highly directional; sure, it's brighter, but it's focussed, like a narrow beam flashlight. Which is not so much what you want for area lighting like the instrument cluster.
You can get lots of LED's these days with the resistor(s) built-in for 12V operation, so as long as you can keep the polarity they're hard to get wrong (and of course, being diodes, hooking them up backwards doesn't hurt 'em, you just don't get any light =))
Alternately, you can get the bare LED's at Radio Shack or a real electronics place and run resistors based on the voltage drop and some subset of the maximum current listed on their paperwork ... but it's a hassle, and while it'd be nice to have dash lights that last forever, I'll put up with replacing them every few years to get a nice, wide area brightness.
The big deal is the blue LED's. I remember the Good Ole Days when blue LED's didn't exist, and when they first came out at retail they were ten bucks a pop (compare to ~20-30c for a T1 3/4 size

) Even now the silicon carbide or whatever chemistry makes the blue just isn't as bright as the red and green (this may be amplified by the eye seeing some wavelengths as brighter than others -- my EE and physics are rusty, too =))
Anyway, the white ones are just three LEDs on the same substrate, one red, one green, one blue, and brightness-matched by dimming the red and green, so the damn things just aren't real bright. You've also got heat issues 'cuz you're blowing so much energy into resistance to brightness match ... it is, as the engineering types say, sub-optimal.
Unless you can find LED's in the same form factor as the bulbs, it would be just as much work to put in other (larger/easier to wire) bulbs as it would to put in the LED's, and then you're not getting as much light and spending more money.
Short answer: stay with bulbs. Cheap, bright, simple, well-proven.
-- A