Call me a sissy if you want to, but with problems already showing up, I'd carry it back home and not crank it again without a wide-open intake and a fairly free exhaust.
Okay, but you left out the most endangered part, a billet connecting rod with bearings. With the stronger valve springs, deleting the governor could (and I pessimistically believe it would) lunch out the connecting rod, hence the whole engine. Maybe even send a big chunk of stock connecting rod through your chest.
Always a smart idea, but won't save your life. Only sound mechanical principles will do that.
If stock configuration, the blowing oil should be fed back into the carburetor, very ugly. Better off having a raised-up piece of tubing coming off of the valve cover breather, terminating in a dense breather filter. Of course, an oil catch can that would gravity-feed back into the engine would be the better choice. Mainly, you have to vent off that excessive pressure in the crankcase without blowing oil anywhere but a catch can.
3rd stage? Is it running a pulse fuel pump, like a Walbro for example? Where does the pulse come from? If it's tapped off of the valve cover, it's very important to drill and tap it in the right spot, on the inside of the valve cover's flapper valve. If running off of the breather tube, then the pulse signal will be inadequate, and who knows where it'll be tossing the engine oil.
I must assume you haven't increased the size of the carb's fuel jets (both main and low) since the intake/exhaust are stock. That's your next step after upgrading int/exh and protecting the engine with a billet connecting rod.
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