Yes I have a Peewee that I run on diesel, and it pulls a small J3 cub around quite well. Forget about the teflon disks they don't work. A thin brass sheet will work though. I also had to remove about .15 mm from the counter piston in order to enable a low enough compression. So don't run it without making sure that you can lower the compression enough. I have run 6x3 props, gives about 10000rpm and I haven't broken any crankshafts yet. They fire right up if you prime the side of the piston, here is a little video;

[youtube]http://www.youtube.com/watch?v=mMJlI0rgXVo&feature=channel&list=UL[/youtube]