I ran the FS-40 some more today. It would not start on the no ether mix. I have limited CR range in this engine. If I can determine that it will start well with more compresion I can change that. It doesn't seem to be as sensitive to CR on this fuel. Exhaust gas is hot enough to burn through a towel at WOT. The Magnum carb is junk or simply not adaptable to diesel AFR. I could not lean out the bottom end enough to prevent it from knocking due to rich AFR,. I switched back to the original and this smoothed out the bottom end. It will start and run well when the engine is pretty hot. Power is the same as with regular mix. Actually there isn't reason for power to increase. Power is dependent on how much fuel is burned, not what kind. Little things like CR and timing can slightly change how much power it makes, but not much.

Try this thread for the four stroke conversion info.
http://www.rcuniverse.com/forum/m_900816/tm.htm