I really feel your idea alone is incredible and very interesting. Really has great potential. :)
You seem to be moving well with it too. Not too fast or slow. I like it. I was concerned that certain plots outside of your immediate plot would be effected by your changes, like Harry playing quidditch but you seem to have pre-empted that.
The only thing that doesn't make sense to me, is why Harry became a Gryffindor. Without Draco's teasing he wouldn't have decided so strongly against Slytherin and the hat would have wanted to put him in Slytherin. But other than that its pretty great.
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