Flat top pisotn yields just under 9 : 1 compression assuming no suprises like you in the hole .050. Thats not much. Add a cleaned up 14cc head and stock dish and things become much more responsive at 10 : 1 for about the same cost.
Find a 14cc clone head on a 5.5 clone ( dead chinese generators from a repair depot are somewhere between a box of doughnuts and 20 bucks ) and touch it up with a dremel tool ( ask how and research this ).
Add a header, aftermarket airfilter, a nice little header and adjust the jetting as needed.
Do that for now and see if thats all you need.
You can make your clone turn 5000 rpm witht he governer and these simple cheap mods and it will be reliable still burn pump gas and you can spend the rest of your money on front brakes.
Your the guy with the 165 right?
The money you save could buy you a rear wheel assembly right now from the classified section ( roller Baja Warrior thread ).
Going faster is great, Stopping faster is highly under rated.
Also watch and learn from Tom at ARC...
http://www.ustream.tv/channel/karttrax