Alright I've been reading these replies to your question. What will fix your problem right away is to move the spacer on the needle in the carburetor from the third from the top to the Second notch, this still make the engine run leaner and a lot better than the stock option.
Here is a great guide on doing that:
http://motoredbikes.com/threads/nt-carb-tuning-basics.24867/
Do not remove your air filter that is just a stupid idea and will not help you one bit if a small rock or even some dirt particles get in there you will have a lot of unnecessary wear. Go get yourself a aftermarket air filter if you really want to replace it.
Like someone Said run full synthetic 2 stroke oil 32:1 about 157ml per 5L, this is the ratio I have used for years and I find it works the best. Replace the stock engine bolts, sick bike parts has a kit for that but you can use 12.9 Grade steel M6 socket cap, 40mm, 25mm and 35mm to replace all the engine bolts get about 12 of each so you have extras and get some locktight red to keep them from vibrating loose this causes air leaks and loss of power, it happens super fast on these engines within a few short rides. You also get the bolt kit from Sick bike parts but it's not the strong stuff only grade 5 so your better off getting the 12.9 grade stuff from fastenal, plus it's much cheaper.
Links to everything I mentioned.
https://www.permatex.com/products/t...permatex-high-temperature-threadlocker-red-2/
https://www.amazon.com/Permatex-272...sr=1-2&keywords=High+Temperature+Threadlocker
https://www.fastenal.com/products/details/39571term=m6+40mm&r=~|categoryl1:"600000 Fasteners"|~ ~|categoryl2:"600039 Sockets"|~ ~|categoryl3:"600040 Socket Cap Screws"|~ ~|sattr06:^"Class 12.9"$|~
https://www.fastenal.com/products/details/1139570?term=m6+35mm&r=~|categoryl1:"600000 Fasteners"|~ ~|categoryl2:"600039 Sockets"|~ ~|categoryl3:"600040 Socket Cap Screws"|~
https://www.fastenal.com/products/details/1139568?term=m6+25mm&r=~|categoryl1:"600000 Fasteners"|~ ~|categoryl2:"600039 Sockets"|~ ~|categoryl3:"600040 Socket Cap Screws"|~
http://www.sickbikeparts.com/catalog/product_info.php?cPath=22&products_id=43
Some good oils recommendations:
https://www.amazon.com/Lucas-Oil-10...682900&sr=1-27&keywords=Synthetic+2-Cycle+Oil
https://www.amazon.com/Castrol-Power-TTS-100-Synthetic/dp/B001KOHX0U
https://www.amazon.com/Royal-Purple...8682873&sr=1-1&keywords=Synthetic+2-Cycle+Oil
I've been using that Lucas oil Snowmobile fully synthetic for a bit and it's killer stuff and a good price where I live, you can use it in al 2 cycle applications for air or water cooled engines.
Grab yourself a new spark plug, NGK B6HS, BP6HS, BRP6HIX are all great options but I personally Recommend the BRP6HIX as it is an iridium plug so it will not foul easily and will last a lot longer than standard plugs.
https://www.amazon.com/NGK-B6HS-Standard-Spark-Plug/dp/B0000BXHSP
https://www.amazon.com/Parts-Direct-2814-Spark-NGK-BP6HS/dp/B006O0FGKE
https://www.amazon.com/NGK-BPR6HIX-...F8&qid=1468680773&sr=1-1&keywords=NGK-BPR6HIX
Consider coating your aluminum head gasket in Copper spray as gasket or Ultra copper RTV, this is a super effective way of stopping head leaks on these bikes and the RTV is good for making all kinds of gaskets.
https://www.permatex.com/products/g...rmatex-copper-spray-a-gasket-hi-temp-sealant/
https://www.amazon.com/Permatex-806...8681201&sr=1-1&keywords=Copper+Spray-A-Gasket
https://www.permatex.com/products/g...aximum-temperature-rtv-silicone-gasket-maker/
https://www.amazon.com/Permatex-818...8&qid=1468681249&sr=1-1&keywords=Ultra+Copper
I hope that helps if you need anymore help feel free to ask.
Happy Motoring!