You are using a good esc and timing is set correctly so not sure why heat is an issue.
I can leave my hand on the can after runs without a problem of heat I am not sure what exactly temps are but I would say right between warm and hot is about right.
I use 100% silicone from home depot usually.
You can get the bathroom kind its a red and white tube and is smaller so can store it easily in tool box or whatever.
You do not want the sponsons to hop because that will caus handling issues.
I put the batteries on the sides of the boat some people put them on 1 side vs the other depending on what works best and which way your turning.
Also what rudder are you using as this can be a big factor in handling.
For lubricant I use a mixture of chainsaw bar oil and mystery oil then for my strut I use grim grease.
These boats you want to free up the sponsons so they are not running wet but not to much or they will flip so CG can be adjusted according to conditions.
On a good day I will have the CG further back if there isn't that much chop.
Take a look at this for some setup tips.
http://classicthunder.org/SetUp/10comandments.htm
That should help get you in the ball park and can adjust from there.
I run a air damn on mine now that I have it running well in the mid 40s if I don't it will certainly blow over.
Also when I tend to put the batteries to far forward it wants to dive sometimes when letting off the throttle on chop so something to keep an eye on.
The smoother the better with these scale boats dont want any hoping or bouncing.
Have fun nice looking boat I know Jim likes it......
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