I have thought about this a lot... being air cooled I'd say no matter what you are seriously going to reduce the life of your motor. That being said there are three ways I would say are feasable for this bike..
1. Raise the compression, these are fairly low compression.. bump it up to 12:1 via head work or different pistons and run a power commander to compensate fuel and run at least 93 octane.
2. My favorite option, turbo. being the compression is already low I believe running a few lbs boost would add 30-40 hp reliably off premium. The dicey part is compensating fuel wise and I'm not sure if power commanders can be made to adjust fuel based off intake pressure. I know you could get a micro squirt but that is a whole bag of worms in itself. The other issue is cooling the intake charge.. not really room for a good air to air but with low boost it may be ok..
3. Wet Nitrous.. pretty self explanatory. have to find a place where you could fog it but can't be that hard or make your own intake with aluminum tubing. not sure how handy you are or if you have access to the tools necessary.
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