Sweet. I think the rebuild will definitely help you out. Also, I don't know if anyone before mentioned the decompression valve, but that is another good leak spot. When you rebuild make sure that thing is clean as a whistle, and slides in and out smoothly.
P.S. Just heat didn't get my case halves apart on the kinetic. The bearings were a little too tight (or maybe my map gas torch didn't heat up fast enough). Zippymopedparts.com has a case splitter/flywheel puller too that really eases the whole ordeal. You may not need it but if you can't get the case halves apart, that is the solution. I would have linked it for you but his sight is closed for a vacation until july 9th. He is actually another good resource for parts. but it is a limited selection of mostly stock stuff and he charges A LOT for them. Nonetheless I have made several orders with him, just based on availability. Let us know how it goes yea?