Re: just ordered my first motor kit, it will be here tomorrow
Blue is more practical. You'll need heat like a propane torch to remove nuts with red locktite. But definately, definately put loctite on every nut (primarily the mounting nuts and studs). I never put any on my sprocket clamp because the vibrations don't get to that very much and it already has a lock nut and washer on them.
I put them on my head bolts too after torquing them to 96inch pounds. Never a problem last 500 miles.
You'll notice power gains for the first 300-500 miles. Tuning your carburetor will help a lot too. If you want help with that you'll have to tell us what type you have, CNS V# or NT.
When I broke my engine in I was basically WOT or not.. I am still WOT or not. I'm also running very rich though so I am incapable of over reving it so my WOT may not be the same as yours. WOT= Wide open throttle.
I had similar experience with the chain stretching. It does quite a lot in the first 10's of miles.
Whatever you do, don't overtighten things. This is soft aluminum. It's also a cheaply made engine. It needs whatever help you can give it, but in my personal opinion it can also take abuse in some aspects because of its high tolerance levels. (compression is different from engine to engine).
With a 44tooth sprocket I max out at 25-27mph running rich (4 stroking at half-speed to full-speed.) Have fun! Lots of parts you can upgrade to get very noticeable power gains. Primarily a tuned expansion chamber.