RE: Katana 120 replacement
I wish I lived nearer to you. I love rebuilding wrecks and I'd but that carcass off of you in a heartbeat.
OS 61FX... first of all you should know that I hate that engine. Its a great, reliable engine that puts out far too little power and has the same problem with cylnder liners wearing out that the entire FX series suffers from.
That aside i doubt you want to buy an new engine so I would have to suggest either a hype or a flip 3D. Either of these two would do well when paired up with the OS61FX... not as brilliantly as they would with a 72 saito 4stroke but well enough.