Wow, H1's for high beams too? H1's are 55W versus the stock 65W 9005 so the light output for the high beam probably will be terrible. As far as sitting flush, they should...if not then they'd be a waste of $200+. HID's will definitely produce a hell of a lot more output in the projector but it's still a halogen projector so I don't know. I'd wait a few months for the price to come down on them just in case they're not what you expect.
As for the HID's you'll only need to buy new bulbs since you already have ballasts.