Ok, here goes Jack, im pretty new to the rc circuit , but i did the same thing with my 100 that you have been through, rusted bearings and reading on fuel containers that you dont need aro if you use this fuel and all
i sent in my 100 and had to fight them to fix it thinking that a new engine that i flew at least 3-4 times a week should never have rusted bearings, well------- thats a myth[X(]
so i started reading on the engines section (glow engines to be exact) and you should too, since im not real expierenced at getting my point across, i do mean well
as far as the aro i now use atf because the old timers say it or airtool oil like your friend say is the best and since ive had my 100 out of the shop ive over 500 flights on it (about 13 months) and im just now feeling a little slop in the bearings if i wiggle the prop shaft but it still runs great
my advice is to go join club saito and read the whole thread and you will learn more about saitos than you will probably need or use.

good luck Jack!!

ps: also you dont need aro in the cylinder head through the glow plug hole because there is no problem in there, just in the crankcase