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Hi Ron,
I think it'd transfer heat just fine. I have the Excel Motor Werks o-ring kit on my bike, and that's a lot of mass between the original grips through the o-rings out to my gloves. I'm sure it takes a little more time to heat up than stock, but I think it works fine.
As to size, IIRC a set of replacement grips has one grip of one inside diameter and the other grip of a slightly different inside diameter: the smaller grip goes on the bike's left side, and the larger grip goes on the bike's right side, because the right one has to fit over the throttle tube, which rotates on top of the bar.
This thread on the R12R Board discusses using another aftermarket grip (ProGrip 724); the poster used the right-side replacement grip on the bike's left side; he said it worked OK, but I wonder if it might have been too large (even over the heating element) and that he'll have trouble on the right. I haven't had a BMW heated grip apart, but I think the heating elements are pretty thin.
Read this on how to change grips
http://www.advrider.com/forums/showthread.php?t=90799&highlight=grips