After listenting to feedback I have moved the item to the front pocket.

Other changes:
-More natural arm placement, arm now dangles instead of rigidly poking out
-Reduced triangle count (~800 for LOD0)

Issues:
The original medic's pocket mesh clips with the misc item's pocket mesh. I've tried decompiling the medic mesh, deleting the pocket and then recompiling but this leads to errors. This, I believe, is something Valve will have to edit slightly (since they have the source mesh) if it ever gets released.

Thanks to Coy for the concept and patteh for the assistance in Source SDK.