Welcome Don,
I think a little time perusing the forum should give you a pretty good Idea of what
is possible in the way of engine mods. Get a few specific ideas together on what parameters
you would like your engine to run in, how much maintenance you are able to keep up with and what kind of fuel you are looking run should give the "engine guys" a pretty good Idea of where
to start.
For example, a guy riding technical single track will want different characteristics in an engine than a guy primarily riding dunes.
Are the tracks you run an oval or more road course, and the distance. Is top end more important than being able to accelerate out of turns.
I would think there are some things the guys could build in an engine right off to save some time and money and increase your learning curve.
Hopefully some of the other kart guys here will chime with what they have found beneficial to their programs.
I am by no means an expert and hope the tone here doesn't come off as such.
For example, I don't understand (as you stated) only running fourth gear direct drive (i guess)
when the engine puts out peak torque in a relatively small rpm range.
The power valve should give you an edge right off as it does broaden the power band.
Unless... you run pretty much wide open throughout your entire race once up to speed, not letting off through the corners.
Oy... enough ranting...
Welcome to the Club!
Tuck\o/