There are two types of mothballs. Napthalene and dichlorobenzene. Both will burn, but the latter produces hydrochloric acid, which will slowly eat away at an engine and its components. Camp stove fuel is a type of naptha, and I would think it would rob power rather than add to it.
Click & Clack, the car guys, did a show about this. They had some professor from Harvard explain why it wouldn't work in 1:1 cars. I think you may have been taken in on the myth that they add power in full size cars - which isn't true.
I believe they were called MPG Caps they marketed for 1:1 cars in increasing their fuel efficiency, which has a main ingredient of napthalene, which is the same napthalene balls. Lots of debate going on with this product, company being sued etc. So most likely it really doesnt work.
Mixing with Nitro, Alcohol and oil might be a different story though. Just let us know what is the outcome.