Depends what you mean by "commercial fuel" It varies widely in make up and it depends what you want to do. Some of the low oil, helicopter or car engine fuel may not have a lot of oil in it. So you could get problems Peeling of LA cylinders is not unkown. The electrloess nickel plating is very thin and has poor adhesion. With low oil content and running lean, this can produce the peeling you refer to. In my opinion, the OS system of plating is only just above junk status.
  Please read the pinned topics above. The LA46 thread gives excellent reference to fuels, while the ones by Randy Smith, tell you the best fuel types for an LA stunt engine.


Regards,

Andrew.

Since the motor is running fine, the peeling of the liner doesn't matter.  The LA series all seem to run fine until the liner wears out.  Then they won't hot start easily, but still run fine.  Eventually they won't start and hold the setting and you get a new sleeve and piston.

The difference between a new p/l and a clapped out one is not very much.  The new one has only a little bit of pinch near the top.  The piston won't quite slide through.  A clapped out one will slide through, but may fit perfectly in another worn out sleeve.