<p>What do you think of using a metric of function point to lines of code as a metric?</p>

<p>It makes me think of the old game show "Name That Tune".  "I can name that tune in three notes!"  I can write that functionality in 0.1 klocs!  Is this useful?</p>

<p>It would certainly seem to promote library usage, but is that what you want?</p>

KLOC is tolerable if you strictly enforce code standards, kind of like using page requirements for a report: no putting five statements on a single line or removing most of the whitespace from your code.
I guess one way you could decide how effective it is for your environment is to look at several different applications and modules, get a rough estimate of the quality of the code, and compare that to the size of the code. If you can demonstrate that code quality is consistent within your organization, then KLOC isn't a bad metric.
In some ways, you'll face the same battle with any similar metric. If you count feature or function points, or simply features or modules, you'll still want to weight them in some fashion. Ultimately, you'll need some sort of subjective supplement to the objective data you'll collect.