Finally a good flight!  I had repaired R2 by using a 1/4" x 36" Estes rubber shock cord. I figured the thin elastic band originally provided just wasn't up to the task of taking the force of the heavy weighted pop pod upon ejection.  Seems it worked well and I was rewarded with the first successful R2 flight! R2 lifted off quick and very straight and near apex he started a twirly.  Just after apogee, the pod popped out and stayed attached.  Good chute too!  R2 started swirling on the way down (that guy is just a party animal!) and landed in good shape.  Unfortunately the pod ended up in a wet dagobah-like puddle and the motor swelled before I could get it out, so I'll have to wait for it to dry before removal...whoopie.  Still a good flight for R2.  

I recommend anyone with this model of R2 to replace the thin elastic band with the Estes 1/4" thick rubber shock cord and a thin kevlar cord on the body anchor.  You can also use the rubber cord to cover the chute so it has extra protection against ejection gases since it's long and wide.

*Update* - Motor was quite a mess to get out...it swelled and stuck to the body tube.  I had to crush, drill, clamp, twist, pull and peel the pieces out.  Body tube wasn't in such great shape, but I've reamed it out with a small metal tube and coated the insides with some CA, so I think R2 will be able to chug along yet again.