My new little toy

I just picked this up to use at the race track to go from the pits to the line. It has a new clutch, recent tires and runs great. The guy I bought it from only wanted $125 for it and I couldn't pass it up. I plan on cleaning it up and touching up the paint. The frame has the original Sears nameplate and I believe it is a Alexander Reynolds. The only thing I may change is the engine which I believe is a 2hp replacement. I have a brand new BS 3 1/2hp still in the box, but it is a 5/8 shaft with threads and no keyway. I will need a little advice as to what I can do to be able to install the clutch and a good way to hook up the throttle. This forum is great and I would welcome any comments and advice from the members.
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I don't plan on using any parts from the old 2hp to the new 3 1/2. I will take pics of the crank and post (now that I got that figured out)
Here is a pic of the bike with repainted forks and updated exhaust. The other pic is the new engine shaft. I got this engine new in the box for $50.