To be honest if your going to use it on the road find a :
http://www.trademe.co.nz/Trade-Me-Mo...-296959214.htm
close to home.
Mucking around with small engines is fun, cheap, you learn a lot if your not familiar with engines. I know of a scoot with a 70cc water cooled cylinder conversion goes just over 100kph before its final drive gets upgraded (they go 140kph in Germany)
Go for it if your racing around a warehouse with a few mates with similar projects but unless your into tuning all the time its not going to be a "start it and ride" scooter its out of its rego class for the road and its hard to vin a modified moped. You can at least get it up to WoF standard eg all the lights brakes tyres etc.
Your speedo will be a problem but a push bike computer will get a WoF
in saying that...
The jet should be fine if its the standard carb, its running premix so some of the volume the jet has is lost to the oil mixed with the fuel, in theory its lean. If you put the oil injector pump back in the system check that its working before draining the premix.
The carb needs a pod filter or std filter the engine runs lean with the extra volume of air available doubling the problem with premix.
I'm not sure why the casing should need to be ground down perhaps a washer under the cupped castle shaped kick starter receiver (?) will bring it further out rather than grinding down the casing.
You can't push start a cvt scoot so anything that makes it more reliable away from home should be done.
The rest is up to you, if your just racing around a track I wouldn't bother with the plastic.
"Your talent determines what you can do. Your motivation determines how much you are willing to do. Your attitude determines how well you do it."
-Lou Holtz
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