You're going to get those black spots for a little while until the rings seat.
With a 16x8, you should be getting around 7800 - 8000 with that engine. Do you have the newer version with the Falkin ignition and graphite coated sleeve? They would get a little more RPMs.
Stay with it, it's a good engine.
Here's a web site with some information for you.
He also has a link to the Top Models site which has some good tuning information.
http://home.flash.net/~jecramer/mvvs160.htm
Jim!