So I've decided to keep my ZA50 on my '78 MKII and after I get all moved out to NM in a week and a half, I'll start taking the engine a part to rebuild it. I took the trans cover off and it looks pretty clean in there. The rear wheel moves backwards so that is a good sign. Hopefully all I have to do is change the pucks.
I will also still be going with the 62cc Malossi kit, 19mm PHBG, stock points and gears, KN filter, and an Estoril exhaust. Hopefully that will allow me to cruise at 40 all day long
Here is a pic with the trans cover removed.