I would normally agree with this 100% but in this case a 206 has a compression release for easy starting. In this case a leak down test would tell you if the valves are sealing. To the OP also check the pilot jet.It's my believe that every toolbox should have a good quality comppression tester. (Pep Boys doesn't sell one)
Test yours, test your buddies, find out what's good and what's bad. After you break in a rebuilt engine, start testing it after every race, write it down. It is my contention that; compression "is" the Holy Grail.
Ken, back in our 206 days, the limiter was our target rpm, acting like a brakeI'm no LO 206 nor an engine guy for that matter, but seems to me as long as your hitting your target RPMs who cares if it doesn't hit the rev limiter, am I missing something. Also are you sure your gearing is right and your just not turning it enough ?
Thanksi had this issue last season. put it on the stand and rev it up. if it hits the rev on the stand its the kart not the motor. Mine hit the rev on the stand. when on the track my kart was binding up on the last corner before the longest straight.