Just wanted to add here Mike came over yesterday and we swapped some parts and bs'ed for a bit, seems there might have been a misunderstanding about choke on/off. Seems he was running the bike with the choke on all the time. No wonder it wouldn't rev past 5k, he says!!! He proceeded to ride home Superman style.
He added that the plugs looked a lot better as well.
Mike when you get back home, before you mess with the jet needle settings, verify its current setting with that in the FAQ. If it's at the stock setting, drop the clip one spot, raising the needle one spot in effect. If your jets are stock 38s you'll need to go larger there as well. It was popping a bit as the revs dropped ( I already told him this stuff, just repeating here for everyone reading).
Also wanted to add he called me from the road broke down with electrical problems from what he was saying, I think he's been into the regulator. Someone with better electrical troubleshooting expertise can probably help him out here better than I once he reports back.