I've been using it for several years over my Rustoleum Automotive Enamel colors. Only recently, on my last two planes, have I had this orange peel happen. I blamed it on myself for applying it too heavy handedly. But after reading posts here, it could possibly be the new VOC changes. I've been very successful if I spray it on extremely lightly and build up several coats. I let it dry for almost an hour between coats, and only after several light coats, then lay it on thicker for the glassy look. If you go light enough it even works on water slide decals without bubbling. But you have to go even lighter with them. They get glassy without a final thick coat. I think I was too impatient on my Shoestring this Spring and had a couple of patches of wrinkly paint. Luckily it was on the under side, because fixing a patch never looks as good as it did. I was pretty irritated because it looked as pretty as any model I've ever done before the Lustrekote. Black Rustoleum seems to be more susceptible than other colors.

It looks good if you don't inspect it too closely(that's not a painted wing)

Rusty,
I see that spelled "ultracote" incorrectly.  Ultracote is an iron-on, thermal shrink covering.  Sorry for the confusion.
Rick

Oh. I could have contributed to the confusion. I had Lustrekote in my mind as I hammered away at the keyboard.

As for Ultracote, I've always liked it better than Monokote, but only covered the open wing bays, so nothing like your project.

Mark,
It was a couple of weeks, so I hope it was all dry.  I looked very carefully at it today and I can see the orange peel in the open bays too, but not as obvious.  Does Ultracote just do this?
Rick

Ultracote does have a bit of "texture" to it versus Monokote,, so its possible, however I dont know if it would be that pronounced,,

remember that with dope,, ( and any airdry materials) how vast you apply it,, humidity and temp all make a HUGE difference in how fast it actually dries out,,

I used an iron on the wood parts and a heat gun over the bays.  The iron was 220 degrees and I didn't (didn't need to) go over it with any higher temps.  It's a Twister wing, so pretty easy to cover.  I'm going to try covering a flat piece of metal and see how that comes out.  Maybe I'm just being too "picky" about the surface quality. 
Rick

Maybe it's something new about Ultracote. Due to colors I needed, I was forced to stock up on Monokote last year and have been patiently waiting to run out. So the last batch of Ucote I had was probably manufactured in 2011. I'm pretty darn picky about the look of my jobs and would have noticed any texture. I prefer ultra because I like the wide temperature difference between adhesion and shrinking. With Mono, the temps overlap.