As per your suggestions:
I changed the gear oil. I drained almost 1 qt. of very dirty oil out, and put in 300cc of new 90w. The clutch is now engaging sooner, which is good.
I got new jets and installed them today, and re-installed my aircleaner. The bike still 4-cycles, but not as badly as before, and I'm getting a higher top rpm. Very good! What kind of oil should the aircleaner element get? Also, I noticed that the throttle slide has some kind of weird wear (maybe primative machining by the previous owner?). I may replace that next, if I don't solve the 4-cycling problem...
I installed new front brake shoes. That got rid of most of the annoying squealing, and now the bike stops effortlessly.
Next project (once I get the bike running like new) will be speedometer repair. I had to disconnect the speedo so it wouldn't self-destruct, because it was buzzing pretty loudly and the needle was bouncing around. The cable is good.
A couple more questions for the gurus. What is normal compression for a ped? Does the reed valve ever go bad, and what would normal symptoms be from a bad valve? Has anyone ever installed (possibly modified) performance parts of a different make on thier bikes? I'm thinking carb and exhaust first, possibly bigger top end, and as far as I know, no one makes performance parts for my brand of bike.
BTW, this is a Yamaha QT50 (Yamahopper), not that it should matter. Ped Gurus would know that all peds are pretty similar and operate on the same principles (same as auto gurus, music gurus, etc)...
Finally, I bid on a manual for my bike on ebay. This manual is very hard to find. Hopefully it will answer some of my questions...
david