Wow, I find this extremely interesting, maybe even more like phenomenal.
I was wondering about the char cloth, did you try this before heating it up in the grill?, or did it only work with pre-heated cloth?
Another thing I'm wondering is whether or not using that greasy Guayacan wood is advisable considering grease burns readily. 
Nice work on this, your turning skill is superior for sure, to obtain this level of tolerance for such a tight fit.
Out of curiosity, did you measure the cylinder and calculate the volume? Diesel engines ignite the fuel with compression ratios in the 16 to 1 area. Looks like you're achieving this from what I can see in the photos.
In any event, very nicely done Jim, this is really unique and interesting.


PS: I just watched the making of char cloth on YT, this answers my question about pre-heating the cloth, turns out that is how  it's made. Made the same way charcoal is made, burning with insufficient air to permit igniting into flames.