Hi Jim,
One, you might already know this, but never use grinding stones on magnesium or aluminum. They will quickly clog up, then will overheat and can explode. Use carbide cutters only. Then as far as magnesium itself, yes you must be careful. Magnesium grindings or shavings can be accidentally set on fire by a spark, and it burns white hot with a fire that cannot be put out with water. So you need to clean up often and safely dispose of it. If you do not let too much accumulate at a time, you'll be fine.
Here is my post and pics of the Stihl 62cc that I converted.
http://www.rcuniverse.com/forum/engi...challenge.html
AV8TOR