Chiro75 engineered a pretty damn good sheath for my CS khukri; the one he's talking about upstairs in fact. I use mine as a primary bush axe when hiking and camping, and though it is indeed difficult to get the retention system just right on it, the more important facet of the sheath to me was it's weather-resistent, secure transportation properties. It fits the bill nicely. So while it may be difficult/impossible to make a quickdraw kydex sheath for the khukri, one can be made that gets it from point A to B quite effectively. And you can't beat the Chicago screws as anchors for nylon webbing for customizing carry on your backpack.
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Professor
Ever notice no other candy tastes quite like Pez? Oh yeah, the BM Mini-Axis and the Rekat Carnivour are the best production folders yet (IMHO, of course)!!