I get plenty of feedback from around the world through my Panasonic and Lafree support websites but have never heard of anyone doing this. There should be no voltage problem though, 7 x A123 cells in series are nominally 25.9 volts. The 24 volt Lafree NiMh end of charge voltage on a new NiMh pack is typically almost 30 volts, so plenty of headroom for that A123 voltage. However, A123 use the charge voltage as a measure, not the cells working voltage like other types, so 7 cells in series will leave it a little undervolted in practice. I think you'd need 8 cells in series with charge voltage of 29.6, say 30 volts. That would give you a safe 24 volt working voltage.
If enough cells in parallel groups were used to equal the old battery's 6.5 Ah, there would be a very small increase in performance, but probably too small to detect. More cells to give about 10 Ah would give a slightly greater increase in performance as well as the longer range.
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