So here's where the project stands after about a week of work:
The motor is apart and waiting for a gasket set to come in from someplace in east Asia and I managed to mount the tires I bought last year but never did anything with. They are Michelin M62 Gazelles, which are a moped tire but rated for 93 mph. These will have to go before the bike touches a track. I resprayed the tank and gave it a stripe for extra speediness and have been doing general polishing and cleanup. Also, my Woodcraft 31mm clip-ons arrived today and I got them mounted in time to take some glamour shots.

Looking better already

Striped - for extra speediness

I did a few other small things in the past week. Lightened the front sprocket cover, replaced a lot of the stock philips screws with socket head screws and fabricated a battery box and tach mount out of an old aluminum Shuttle PC case. The project is basically at the 'waiting for parts' stage right now. I have a set of Motobits rear-sets on order as well as new hand controls and a much lighter 12V 2.9ah battery. Until then I'm stuck ogling fairings and trying to figure out how to route the exhaust.

Upon opening up the head I noticed the exhaust valves look a little toasted. I may need to get some replacements for those, although the rest of the motor looks very clean inside.

Shiny and holey. That's at least an extra horsepower right there!