Don't propane tanks have a big weld seam in them that would have to be ground down for a piston ?
Well, first it's going to be used as a displacer, not a piston, so the clearances are much more relaxed.
Second, I think a little quality time with a hand grinder would make it smooth enough pretty quickly.
You usually need an air gap around the displacer anyways (depending upon it design.)
Hope I didn't misunderstand your question.
What I'm wondering about is what is the displacer cylinder is going to be made out of.
That could make or break the project.
Crumpite