Too much oil spitting isn't normal. There's likely a bunch of unburned two stroke oil in the exhaust pipe.
Take the pipe off and first pour what oil you can out of the pipe. Make it easier on yourself by heating the pipe with a propane torch to make the oil more viscous. Then pour in some full strength Simple Green and shake and slosh it all around for a few minutes. Leave in the pipe for about fifteen to thirty minutes, shaking and sloshing occaisionally. Full strength Simple Green works great as a degreaser. It's fairly cheap and most importantly, it's non flammable and non toxic. Pour out the oily mess before doing the next step.
For the next step, you may as well decarbonize the pipe by scraping off all the carbon you can in the header and the stinger. Use any tools that work. This will also get rid of unburned oil sludge as well. You can use a drill with an appropriate bit or even a Dremel if you're careful. With the drill motor, you can make a tool (for free) that gets further into the pipe by cutting the straight portion out of a wire clothes hanger, bending one end a bit, and using it like a roto-rooter. Careful with the power tools and only use them at slower speeds.
Then, put fresh full strength Simple Green back into the pipe, shake and slosh it around again, and then let it soak for another few minutes. Make sure to get the solution all through the pipe. Then shake and slosh it around more and finally pour out the mess. After you pour out the oily slop, use a garden hose with some high pressure and squirt what you can through the pipe. This will get rid of most of the unburned oil and sludge.
After the shake, it's time for the bake. Heat the pipe again with the torch and pour out what remaining oil/Simple Green you can. Then, keep heating the pipe by directing the flame all over the pipe and burn out anything left in the pipe. It's going to smoke alot and it's going to get really hot, so be safe when doing this. Don't overdo the heating at the silencer portion of the pipe. In general, you're just looking to make all remaining liquids and deposits go up in smoke and steam.
After the bake step, let the pipe cool. Your exhaust pipe should now be free of unburned oil and sludge and free of carbon deposits. You might want to paint it at this time, and it's a good idea to replace the exhaust gasket at the cylinder. Bolt it back up and you're good to go.