Puck? We don't play ice hockey here so we call it a separator piston. As Greg says, solubility of nitrogen in oil is significant, and depends on temperature. Also foaming can occur without a SP and gives you compressible oil, which reduces damping effect.
Yes they do work and you should use one if you can accommodate the extra length. Providing you have a low friction seal and bearings, the SP floats with no significant differential pressure and merely separates oil from nitrogen. Talk to Busak & Shamban or Greene Tweed about seals. You could also consider a nitrile bag as used in accumulators. Either way, make sure you can bleed air from below the piston / bag.
Don't make your piston shorter than 60% of the bore diameter, or it may cock over. (We don't want a cocking puck, do we?)
Gas index: for nitrogen adiabatic is 1.4 and isothermal is 1. For off-road, we use 1.27 as a typical figure for heavy vehicles; maybe 1.3 for lighter ones. But as Ken says, it doesn't make a huge difference.
If you keep units consistent, the gas laws work fine, just as Mr Charles and Mr Boyle predicted.
John