Paul,
I've just put my engine back in. That's the third time in about four years of ownership. I've replaced seals, upgraded to the "latest" (steel piston) slave and use the recommended hydraulic fluid. As you can imagine I've put a lot of thought into solving this problem. The thing is I reckon the concept is brilliant just that it has not been executed well, which is what you allude to in your post above. I also thought about the possibility of resleeving and considered making up a stainless sleeve. What has prevented me from doing this however is the difficulty in achieving a tight seal where the drillings from the hydraulic feed and the bleed nipple would breach the new sleeve. I am pretty sure that however well fitted with the pressures likely to be generated fluid would find its way between the new sleeve and the bore in the bell housing so no better off the before. To be honest I think that if there is a way forward with this it is with improved materials for the o rings. I tried to source some Viton rings but have just run out of time and resigned myself to trying this next time which will be in another 11-12 months.
I think what is a great shame about this is that Caterham have obviously "washed their hands" of this concept. Other wise why would they have gone back to the less competent clutch fork for the K series dry sump bell housing.