welcome rodney,
you have an idea of what you want your final product to be so that is a good start. the next thing you need to take into consideration is what your budget is. once you have that determined you will have a better idea of what goals to accomplish first and what you want to save for later.
the common theme around here and the correct one is to make sure your bike is up to snuff as far as safety is concerned. brakes and tires being at the top of the list. after these items are all sorted out you may want to concentrate on upgrading the suspension and handling. i.e. bronze swing arm bushings, rebuild forks (maybe install progressive springs if you want), rear springs and shocks, tapered steering bearings etc. etc.
here is a link to suspension suggestions.
http://www.sohc4.net/index.php/archives/280it is always best to make sure your bike is in optimal shape in all other categories before you try and make it go faster.
once you are there, have a blast with your engine.
the search function is your friend. there is a ton of valuable information this site can provide.
have fun, take your time, and do it right the first time.
ps. you either have a 1977 K7 or a 1974 K4
-evan