Flyjoe, no you can't eliminate the gasket between the jug and the case. Not only does it seal the jug to the case, but by removing it, you chance the timing on the engine... The exhaust and intake ports will open later and close sooner, like if you retarded the cam timing on a four stroke. This is fine for low end, but we all know you're not after that. Go by Two Stroke Performance Tuning by A. Graham Bell published by Haynes. It's probably the definitive book on, uh... two stroke performance tuning. It tells you how to do the math to build a proper tuned pipe and header combo, how to port, where to port, when to port, how to modify the quench area of the combustion chamber, fuels, oils, carbs, and way more stuff than you'll ever need. I've been reading the book for about five years, and basically, there is no set "do this and this to get this" with a two stroke. Every engine is different from another, and the port timing and tuned length is going to be different every time. It's a black art, basically, and you need to experiment to find the right setup that works for you. Plan on buying a few cylinders and modifying them slightly different to each other and trying them all out to see what works best. Same with the pipes. I can tell you that you're on the right track with stuffing, but make sure you rebalance the crank. Pay VERY close attention to the ports and pipe, and you should make some good power. With this book, I was able to get 54 WHP out of a Honda CR125 in a '99 CRG shifter kart chassis.