So I fixed the meshing of the gears and took it for its first run.
It's raining out today so I had to give it a go in my garage. This thing is going to fly. Also, some good news, it does work in reverse, only slightly, but it does. The old one-way bearing must be clogging up in its old age lol, so it's worked to my advantage. I also tried some drift tyres and it seems to be balanced not too bad. Anyway, here's a nice vid for you.
http://www.youtube.com/watch?v=gL4k_uyzlYU