I would start with a smaller project. Especially if you want a really nice sheath for the waki. I think in the long run you'd be $$ ahead to try first with something smaller (besides, it's kinda addicting....not that i now buy knives just so i can make sheaths or anything.....)
As for temps, that varies (again, reason for a few practice sheaths). I use my regular oven at 350 and adjust the time in the oven to get where i want (usually 5-10 mins, longer and i get Kydex shrinky-dinks). Temp is kinda a touchy feelly thing. One example, I usually use .090 for most things and have my time/temp dialed. Then i did some .060. Figured i had it licked. Except that the difference is mass between the two thicknesses had a significant impact on working time before it cooled off too much. While the 060 was easier to get sloppy hot, it cooled really quickly. Just one example. Also remember ovens are notorious for being inaccurate to their dial's stated temp and that the temp can swing wildly over a heating cycle.
Knife kits should have what you need for rivets. Even in the rivets are a bit long if you take your time you can usually get them to roll over nicely. I usually don't give specific advice on where to get things, but their rivets and hand setters (not to mention their press setter) are all top notch.
I would recommend using a single piece of kydex to form over the sheath, cut/shape out three sides, set some rivets, then cut away the folded part to get your pancake. Have to be careful to rinse out all the cutting/sanding debris and dust, but it works for me.
Could do it out of 090 with some reinforcing bands here and there. Might look cool. That was my plan for a friend's waki, but the leather sheath he got is just tooooo coooolll (and I don't think he'll let me kidnap it long enough to get the job done).
Make/buy/steal/borrow a press. Something that size you don't want to try the stand on top technique
Good luck!!! and post some pics when you get it done!!!