I can't give exact answers for placement etc, but I'm sure Max can.
I would definitely make it temperature resistant and black (painted metal perhaps), as you want to stop as much light bouncing around as possible. Size of the hole may have to be determined by experimentation, so you can decide how much brightness you can live with.
You might be able to make a variable iris by having a moving part come out of the top of the case so that you can move it up and down. It'll have to be able to stop where you leave it as well.
The image brightness was visibly reduced on my HT1000 when I closed the iris, but I didn't measure the differences between open and closed. I might do that later though.
I'm sure Max will be able to fill you in on the details and even help you make it.

Google might turn up some interesting info as well.
Gary.