RE: redesign the 2 stroke?
Go to E-bay and type in : "inline engine" under the hobbies r/c section and you will see for sale a Kramarenko .60 which won the world championships in 1974. It has the configuration you are talking about. I'd love to have one but can't afford it. A copy of this engine was made by Hiness (a Japanese company)which was far more attractive and sells for an even higher premium if you can find one.
Max
Here's a poor picture of the Hiness