The fact that the engine is turning 7800 RPM is telling me it's making enough horsepower, with that gear ratio, to reach that rpm. How fast it's going, at that RPM with that gear ratio, is another story. Now I'm pretty sure that if you ran the engine on a dyno you would find the horsepower going down at a very steep rate, and I think that's what you're talking about.
Something to try; if your turning 7800 RPM, try taking one tooth off the axle and see what happens. If you lose less than 100 RPM (or pretty close) you're actually going faster. Of course it depends on what gear ratio you are running to start with, but there are resources available to check it out.
It's possible you have too low of a gear ratio, but only experimenting, and some calculations, will prove it.
It's called tuning, and tuning is tough! (Al Nunley)