So I messed around today and tuned the carb and changed spark plugs to get the engine running well. I was having issues with the ignition cutting out at high rpm or when opening the throttle too fast, turns out the Autolite Iridium plug I used isn't suitable for those conditions, so I changed to a short E3 3.14 plug and its much better, also went up to the drilled out "87" main jet. She runs great again, this Dellorto style carb is tricky. You need to twist the throttle carefully and transition through the progressive jets to be sucking the right amount of fuel for the engine rpm and load, if you open it too much too early, the fire hose of fuel will put out the fire.
Heres some new pics.
Here's the new metal derailleur sprockets, no derailments of the pedal chain now.
Sorry the pics aren't very crisp, I'm horrible at taking digital photos.