O about 12-14" from the plant would be good. As far as the venting I would say you need to run at least a separate 4" line to vent the bulb. I take it noise isint an issue for you?
I think you had the right Idea with led's but you might not be happy with the unit ya got..
Why are you trying to cram a hot as bulb in that little space?? I would think if you have your ventilation good just get a better led unit...
Let me know though I can help either way.