Sounds like you broke a ring- is the motor new- they can catch a port- you'll have to take the cylinder jug off to see- if a ring broke it has likely scoured the cylindar walls-
and you'd have to replace the jug, the rings and possibly the piston- sounds worse than it is, but first time sorta a challenge
don't know how an imprint gets on the head
heres a thread I asked questions in when I replaced my cylinder head
http://motorbicycling.com/f52/can-cylinder-body-replaced-without-special-29691.html
Don't give up! The motors are really pretty simple, cleaner than four stroke and can be fairly reliable when you get it going.
My thinking is to keep it simple- I think you may have trouble with any longish offset intake- seems to be a lot of nehgative there- Although you've already spent a lot of money you may get better results with a short billet intake - about $18 and I think a regular carb-
It appears that the 66 "Speed carb" introduced a couple of years back MAY BE RESURFACING with a new name from the chinese- I queried Boygofast about a carb he's selling for $20 delivered that looks like a Speed- his ad says speed in it- and asked him if it was labled "speed" at the top - his answer was inconclusive- other letters at top of body- so I'm still wondering-the body looks like my "speed carb" and not an older kit carb.
http://www.ebay.com/itm/gas-bicycle...=190490814316&ps=63&clkid=4087498979654954736
at any rate I have a 66 speed carb and billet intake on my 66 and can't ask for better performance with no hassle
You may or may not have clearance for a short billet and/or a normal carb- there's also a short billet for CNS- Your air cleaner is MASSIVE- you have clearnce problems- but I think the closer to the motor generally the better the carburetion- The little round kit air cleaneres doesn't look that cool , but serves it's purpose- I generally drill a few small holes in the back to let in more air.
these little motors just don't suck that hard when you get off the throttle- search other posts here about lonfg offest intakes and I think there's problems.
If it's making noises tho- probably a blown ring- but maybe not if it still runs- I'd take off the head and pull the jug up- you may need some gaskets or have some extras if you can reuse the old ones top and bottom- you had the top off- how'd the gasket look?
take a file if you have one- a nice flat one- and file the head surfaces smooth to help the gasket do it's job.
good luck- and don't give up.