If anyone could point out the flaws in the reactor design (I'm assuming there are probably a few, I know there are several grammatical errors I must fix for a fact) that would be greatly appreciated!
I applause your effort, and I cannot see anything immediate wrong from a test perspective, but to add some hints or warnings that come to mind.
1. LAH, LiALH4, is a non trivial compound, both to acquire, but more so in handling. It is not to be trifled with. Make sure you have someone in your surroundings that understand the implications.
2. Same goes for high Mesh Ni powder. It is not to be trifled with. It has to be handled with care and insight, as to avoid undue exposure, which can, in extremes, lead to death. Again, make sure you have people around you that understand the implications, and that you have proper equipment to handle it (glove box or other similar chem lab equipment that keeps you from inhaling the stuff, and spreading it into your environment.).
Note that both compounds are NOT good for the general environment, as it will have serious negative effects to anything biological. Hence you need to avoid releasing it also outside your own close environment. Consider this if there are any spill of these compound while handling them.
3. Pressure. I do believe that a major condition to actually have a positive outcome (as the H2 needs to be loaded into the Ni lattice of the particles in the Ni powder), is that the tube where your reactor tube does hold the pressure. Not only the pressure of the air trapped in the reactor, that will increase about linearly as you heat up, but the pressure from H2 being released from LAH as it goes into the 150-200C zone ,and later at 400C. If it the seal breaks, and the tube vent while under that operation, you may inadvertently release some amounts of the fuel into your environment. In your case, it would mean the oven, so maybe not really so big a problem, but still. Keep it under consideration, and do test the tube for pressure specs before running. Note that Hydrogen is notoriously difficult to hold down, so the seal must be pretty good.
4. Ceramic and machining. When you talk about a "pre-drilled hole" in the ceramic, note that machining for example Alumina requires some special tools, diamond machining and CO2 lasers to mention a couple I found on the net. If you on the other hand have the tube prefabricated from some firm specializing in ceramic products, the they can do the hole.
Otherwise I would more put this setup in the Brian Ahern's domain, rather than Parkhomov's, as you use an oven to heat.
Best of luck.