Here is a Spalted x-cut Alder that I turned a few weeks back. http://www.penturners.org/forum/topic.asp?TOPIC_ID=15470
I did one without stabilizing it and had tear out while drilling. I glued it and while turning, the tear out "surfaced". Those are with my pile of shame right now [:I]
I stabilized this one with plexi-acetone mix before drilling and it came out very nicely. I still doused it with thin CA inside the hole and re-drill before I glued the tube. Again used thin CA as sanding sealer after getting it close to final dimensions.
I think it was worth the trouble though.
Good luck!!!