Nice Score
First thing I would do is really clean up the engine. A clean engine will help you spot any leaks and also may help cooling a bit.
I would firstly give it a tuneup and then I would check the brakes for dragging and possibly repack the wheel bearings. This way, you would know the engine is running its best and all friction points have a minimum amount of drag.
From here, I would go with a header and muffler ( a few hp).
Sandeep
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