Hank,
This protocol you describe is very similar to one I have used with the exception that an external H2 source is used throughout, to the exclusion of LiAlH4; the motivation being that an external H2 source offers better control of H2 pressure than decomposition of LiAlH4. I have used both bulk metallic Li as well as passivated Li powder. So far the amount of excess heat measured is no more than a few watts, not sufficient to claim beyond experimental error that an unambiguous excess heat signature is present.
In reviewing your protocol something does come to mind: perhaps the Ni and Li should not be in physical contact. Instead the Li is heated until sufficient vapor evolves and is condensed on the Ni. This approach would prevent the Ni from being totally covered in Li, a situation that may prevent the necessary NAE. It also would permit the Ni and Li to be maintained at different temperatures. We might consider heating the Li to near its 1300C boiling point while maintaining the Ni at a temperature low enough not to destroy the surface morphology.
In any case, the next experiment I plan to run will separate the Ni and Li with a permeable barrier.
Jeff