I have an OS 46fx that is rusting through bearings. I had recently replaced both bearings due to corrosion, and now after a max of 2 hours running, the rear bearing is rusting.

This engine has always been run dry, and I have been running no nitro, 20% klotz super tecniplate. The original bearings had rusted due to water in the fuel, and then the replacement bearing rusted. Now the new bearing is starting to rust. Very disappointing. The counterbalance had some corrosion on it, and around the rear bearing has corrosion.
I took apart the engine and some orange fluid dripped out. I washed out with methanol and dryed with a hair dryer. What should I do now?

To top it off, the liner is starting to peel[].

The engine has not had a heap of running either. It runs fine so I would like to say its a great engine, but I cant...This is really starting to annoy me, I shouldn't have to deal with these problems.

Stefan