I don't know where extra comments would appear i the above post so I've Started a new one.
I did end up filling this one with oil. (46 grade Mineral oil)
My initial concern with oil filled thrusters is from comments by Rover3D that expanding oil (due to heat) will crack any fully enclosed cases, such as ones with Magnetic couplings.
With that in mind I set out to have a housing that a relief mechanism (the oil seal) and reasonable cooling surface. (the aluminium tube)
So I ran the unit dry for only 2 or 3 minutes and the temperature increased quite a bit, I only potted the wires with bees wax as it was meant to be temporary and oil started to seep out as soon as the temp increased. This would have normally exited through the seal if potted with epoxy. (I think?) That's OK but as it starts to cool again it would suck in water (or air if back on board) that was why I thought of water soluble oils.
Another possible solution is to have a compression spring on the housing bolts so the unit can expand and contract with temp(slide on the O rings) , I've had a quick look on line for stainless compression springs, but no luck yet, I don't think spring washers would give enough expansion?
The fan is from an old PC, it was the CPU cooling fan. I've got some no name props on order from Hong Kong, but really like this fan, certainly compared to the cheap airplane props on my test rig. I may go to the tip (dump) tomorrow and see if I can get a few old PC's to recycle.
The bearing is a standard run of the mill skate bearing with the seal removed.