Every J-570 I've flown (20 plus) the liner has come out of the case with a full crack the entire length. The result is a line of hard residue, in the case, where the crack was. A little elbow greese removed the crud, but a slight line was left where the anodizing was removed. There was no other damage. Also, I've never had one CATO. I've also flown several other motors that had cracked liners, before hand. I CA'd the crack and the motors worked fine. This is NOT a procedure that I recommend, however. It's just that it wasn't that easy to get a replacment liner and I thought I'd try it. So far........no problems:-) As I understand it, the real "seal" for the motors needs to be to keep the hot gases from setting off the ejection charge too early. I've had many liners burn thru (one way or another:-) but as long as the hot gasses didn't leak by to the ejection charge.......the motor worked fine. I might also suggest that you greese the liner/inside of the case as to minimize the amount of contact the gases have with the case. Messy but the clean up is easier. To be as safe as possible though, use a liner that isn't cracked:-).
Lloyd Wood BRS Secretary Level lll