the 2 stroke oil is for injection, it's made for modern boat motors, I use it because it smokes less and lubricates well. Also the fact that it's for a boat leads me to believe it has a high tolerance for moisture.
I cleaned the carb today, put in a new needle valve and did some tuning on it, I got it to a new world record (for me) of 30 mph and that was the uphill direction of the block. If it would normally go 35 I'd likely put a plate on it.
The Treatland / Malossi 70cc kit looks like fun but $650 is a bit high for a $400 pit bike. It has an exhaust, cylinder, piston, rings, pin, intake, head and carb.