Several ideas..
Is the cylinder gouged from the broken ring?
Did you reuse the old head gasket, without even flipping it?
Is there a vacuum leak around the new reed valve?
Is there a leak at the base gasket, since you presumably removed the cylinder from the crankcase?
Did you modify the intake port to allow the reed to fully open? (Should still run a bit with that but I thought it was worth mentioning)
Did you ever find the original cause of the broken ring?
Switching to reed valve intake should require an increase in jet size rather than decrease, at least from all I've read and how I understand it works. (The intake velocity is reduced as the intake duration is increased, this reduces the Venturi suction and so requires a larger jet)