first of there is no leak in the oil seal.
i did remove both valves with a screwdriver and pliers, and gave them a good sand with 2000 grit sand paper, this stuff is so fine you can use it on the cylinder bore of an engine (i have done it to my old MSAA engine and there were no issues there)
i removed all the build up on the valves and the intake and outtake ports, the intake port had a lot of metallic burrs on it that i filed and cut away, then sanded both the intake and outtake ports so that they are now relatively smooth.
I reset the valves and saned the cylinder head so hopefully the engine will run good, the only possible problem now can be the carby.