You need to use a 6" liner.... I have one for my wood stove which runs inside a masonry chimney. Furthermore you should talk to your fire department to get current code as they may differ a bit from town to town.
If you try to "neck down" your pipe you will adversely affect the draft for starters. I don't believe those pellet stove liners are anything like the wood stove ones in regards to their makeup since they do not have to withstand the same temperatures a wood stove will put out. Also the wood stove liner I had put in was insulated to retain the heat in the pipe to reduce the potential of creosote buildup. That cost a little extra but well worth it, every year I clean my pipe there is very little buildup after a full season of non-stop burning.
This is something you really don't want to screw around with, trust me I had a really bad chimney fire that almost took my house because I decided to cut corners on my wood stove installation. I learned my lesson. Also it's a good way to void your homeowners insurance policy.
Yes these liners are very expensive.
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