Steve - what you're suggesting to do is what is done at every disconnect point in an airplane, so your concept is good.
With that having been said, I'll also suggest your execution, as described, likely won't produce professional-looking results, and in the long run I suspect you'll be unhappy with the approach you've suggested.
If you look at the harness supplied by Stein you'll notice his folks use some fancy light blue terminations for the shield. These are made by Raychem and can be purchased from Aircraft Spruce or several other suppliers. While pricey they are THE way to terminate shields. Inside the light blue shrink tubing are three things.
1) a band of solder to completely encapsulate the shield strands and to make a positive connection between the shield and the short pigtail wire which you'll insert before shrinking.
2) a band of thick gooey adhesive that's used to seal the "open" end of the termination where your twisted wires exit
3) a band of not-so-thick gooey adhesive that's used to seal the opposite end of the termination, where the outer jacket of the shielded cable is still in place.
To properly terminate the shielded cable, remove about 1.5" of the outer tefzel jacket material. Carefully cut the braided shielding strands so that only about 1/4" projects from beneath the outer tefzel jacket. Cut a 22ga jumper wire approximately 2-3" long, strip one end about 1/4". Lay the jumper wire on the shielded cable such that its stripped portion is in contact with the 1/4" of bare shielding strands and its unstripped portion lies in contact with the outer tefzel jacket of the shielded cable. Now slide a Raychem termination onto the cable such that its solder band is positioned over the stripped end of the jumper wire and the bare shielding strands. Shrink in place, ensuring you've used enough heat to cause the solder band in the Raychem termination to melt. Now all you have to do is strip your jumper wire and the twisted wires from the shielded cable to the appropriate length, crimp on your Molex pins and insert them into the connector housing. Voila! A neat, professional shield termination that will stand the test of time and will allow you to easily extract connector pins if the need should arise.
Just for reference, these solder sleeve terminations are sold under p/n 11-04480, -04481 and -04482 by Aircraft Spruce.
As another note... Keep the unshielded portion of the wire as short as you can, consistant with being able to use connector insertion/extraction tools. And keep your pigtail wires short too so they won't act as antennas.
... then some good shrink tube methods exist.
