It has been great fun, so I thought I'd report my findings.
Here's the formula. Anyone know who to give credit to?
Ammonium perchlorate...............63
Silicone II.......................................22
Copper(II)oxide.............................10
PVC.................................................5
I've heard that the right Silicone smells of Ammonia, not vinegar. I found some unibond all purpose sealant lying around (translucent one) which smells of Ammonia, and have had no problems so far.
The Silicone was weighd out in a container, then everything except the Perchlorate was added. I just stirred it until it reached a uniform, sticky consistency, then added the Perchlorate. After lots more stirring, the mixture starts to thicken, and pick everything up from the edges of the container, forming a nice blob. Now It's very easy to handle, and can easily be pressed into tubes or rolled out to a sheet.
I started by trying this as micro-stars, so I rolled it into a flat blob, about 2mm thick. After about a day (I think) it is cured and can be cut up easily. They are VERY keen to take fire.

I loaded about 7g of these little stars into a 3/4" BP fountain with these results:
(note - turn down the sound if you are offended by foul Language)
Blue fountain (1.5meg)
I was pretty chuffed with that. I think a higher percentage of stars would work better - looks better when it's constantly flinging them out

I tried substituting 40% of the Copper Oxide for Strontium Carbonate, but the results weren't too good. You can see it on the right - less saturated, not much more purple.

I'm tweaking a formula with a higher percentage of Carbonate using Chlorowax, which seems much more promising.
I would think very carefully about making rockets with this, but I've done a small static test. I cut a strip from the original formula and rolled it up in lots of kraft, leaving a bit poking out the top. The finished motor (if I can call it that) was just over an inch long, and open at both ends.
Turn up the sound for this one! blue static test (800kb)
Now I see why they're called "flatulent blue smurfs" Hoorah for Silicone!