Certainly sounds doable to me. Personally, instead of using lava rock or beads as a false bottom, I'd use eggcrate or something similar to raise the floor. That way you have much easier access to the bottom of the tank for cleanup, and you can see exactly what's going on down there. Plus, if you have some water in the bottom and a fan blowing over it, you'll get the high humidity you need really easily, even with a few vents to allow for air exchange.
As for air circulation, don't risk not having any, even if things seem fine at first. High humidity, stagnant air, and low light are ideal conditions for all kinds of fungus, but just having a little computer fan in the corner circulating the air can make a world of difference. You can get little 12V fans at surplus stores sometimes pretty cheap, and all you have to do to get them to run is plug the wires into a 12V adaptor (but they'll run on as little as 3 or 4V) and away you go.
Are you planning on covering the top of this terrarium? That'll make it a lot easier to get more stable conditions if you do.
Good luck and let us know how it goes!
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