Ok here's my own first real contribution to this thread:
I've been experimenting with various solutions, as described in this thread, and I have found one of my own thats pretty good!
You know those "Second Skin" gel patches used for burns? Put one over the affected area, and duct tape it so there's minimal shifting. Whatever friction normally makes a hole in your foot would be absorbed by the soft gel patch.
Only problem I've had so far was when the gel patch shifted, but that can be fixed with better duct taping techniques
