Peter,
Nice informative post. The squealing is me slipping the MANual clutch to get as much 'acceleration' as possible. When fully engaged (I was taught disengaged in farm class) the clutch doesn't seem to slip at all. Normally, I pedal up to about 14mph, drop the clutch, and let the engine take it from there.
I'd really worry about the unintended consequences of a compression increase too. Right now it purrs along so nice at cruising speed. Very mellow and relaxed. Easy to imagine I'm riding an early 1900's motorbike. More compression would mean more heat, more vibration, and higher loads on an already fragile platform.
I really don't know what they were thinking with the Ambassador??? I wish they put the effort into Whizzer improvements instead.
Hey, I've got one of those XL600R's too!