I have shot a fair number of FailSafe bullets with the original Winchester Lubalox coating in a Steyr .308 Win, and I have not observed any bore effects from it.
I have heard that Winchester originally used it as an appearance coating to set the FailSafe bullet apart from the competition, especially when it was loaded in nickel-plated brass. You know how that high speed, low drag look sells. <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />
jim