Having just purchased a KAYO MR125, I find myself running into a small problem.
The problem here is that no one has complied a list of those things, with known good settings that will get you started. There isn't really a proper service manual, only the manual for the engine that was used for cloning. The best answer is often contact this person, contact that person, ask another question, round and round. It would be so much easier for people like me to get going if everything was in a list. So let me document what have so far.
The very first thing you MUST do is wash the fuel tank! No excuses. Fuel tank washing
#1 drive chain tension. Check this because mine was completely tight. This will damage bearings if you run it this tight! It also robs power and you need every bit of power you can get.
#2 fuel tank. Check to make sure the petcock is screwed in tight and operating properly. See also the fuel tank washing article Fuel tank washing
#3 front forks. You need to pull them out, drain them, collapse them (springs still in?), and put in fresh 20 weight fork oil. We'll talk about what this is doing after I finish reading "Race Tech's Motorcycle Suspension Bible" book, I bought the paper version but also had a deal on the Kindle version, so I'm chewing my way through the Kindle while I wait for the paper version. Not sure how much I will be able to do to these forks, but it will give good insight into what should be happening. Fork work
#3a fork lower mounts. You will want to change the lowers to the better SV Racing Parts lowers, these correct the trail to give a more stable track both straight and in corners. If you didn't buy the race kit, go back and buy it, you'll need stuff that's in there. We found that buying the bike and race kit at the same time was the best value. Article on replacing the lowers Fork lower replacement
#4 valve lash. The owner's manual says the valve lash should be 0.05mm. In an email from SV Racing Parts, Blair is telling me to set this to the front valve (exhaust) at 0.10mm and the rear valve (intake) at 0.12mm and make sure all the nuts are tight (seems to be a theme with these to make sure the nuts and bolts are tight). When you read the manual you'll understand why I am doubting the 0.05mm specification, it's full of contradictions. Blair has been racing these for a few years now. Valve adjustment
#5 carburetor. This is a bigger one. I did get mine started without doing this stuff, but it barely idles and often stalls when you crack open the throttle. Very likely plugged with gunk because while mine is new to me, it was built and crated in January 2015. They did drain the fuel for shipping, but the tank just stinks of old gas. I have Seafoam in the tank and carb. right now, hoping this will do a little cleaning for me. Carburetor settings are very much affected by atmospheric conditions, they can change a lot with the weather so these are just starting guidelines. But on to what you need to do. Link to the procedure Carb jets
5a pull the carb. You'll want to have ready access to it to make sure all the passages are clean.
5b air screw. Turn this all the way in, then back it out 2.5 to 3 turns, Blair suggests 2.5 as his preferred amount. We are finding that more than 2 turns means you should install the smaller pilot jet again. Should be anywhere between 1/2 to 1-1/2 turns out for our elevation.
5c install main jet. In the race kit, you have some new main jets, Blair suggests the 102.5 jet with the 22.5 pilot jet.
5d idle. Set the idle screw for about 2000rpm cold, Blair says this should go up to about 2500rpm when it warms up. Seems pretty reasonable for a race bike to idle up here, though it will slow your off throttle coast down. Should really be an issue since you rarely coast down into a corner, that's what brakes are for. This may end up as a user preference setting.
5e needle valve. Suggestion was position 4 from the top.
#6 remove the electric starter. Not sure why these even come with the starter in place, it must be cheaper to just pull the engine off the shelf and install it than it is to build the engine without the starter. The plug for the starter is in the race kit. Starter removal - part 1 and Starter removal - part 2
#7 flywheel. When you look at the flywheel, you'll see there is a huge mass of metal there. This mass needs to go, and get gone as soon as possible. Reports on the web are that 20 ounces of lightening are pretty common (standard TT-R125, with electric start closer to 14 ounces removed), and the flywheel is still heavier than it really needs to be. Just search the web for "TTR125 flywheel lightening" and you'll see what I've seen. Pretty sure you need to get down to that area of the engine when you are removing the starter so it makes sense to do this while you are in there. Lightened Flywheel
#8 motor oil. I'm thinking of buying some 10w40 break in oil. This type of oil is "specially formulated" to help cope with the stresses of braking in a motor, one of the few you can find is Joe Gibbs brand, think I bought it from Jeg's online. I've used it before and read the ingredients, there is lots of good zinc in there to help lubricate the surfaces and lots of detergents to wash away the pieces. I may save this step for higher compression piston and reground cam that is almost certainly in my future. I'll probably run Mobile 1 4T synthetic oil in this engine. Easy to get on the shelf at many auto stores, it is formulated for motorcycle use with wet clutches.
#9 bleed the brakes. Make sure you run enough fluid through to get fresh stuff everywhere.
#10 install the rear fender/hugger. Some tracks require a rear fender of some kind, install process is here. Hugger install
#11 balance the tires. Not much to say, worth a check to make sure they are good. Balancing the wheels
#12 safety wire. A subject that most racers hate, but it's required so get used to it. Safety Wire
#13 alignment. There are a couple of ways to do this. Wheel alignment
Did I mention the race kit that you can buy at SV Racing Parts? I couldn't find the link to the kit, but it has lots of goodies in there that you will want http://www.svracingparts.com/kayo/
I'll try to add to this list as information becomes available.