KGB racekarts are very high-quality/reliable, and still win lots of pro-level kart races around the whole world.
Yours is an older (late-1990's/early 2000-era) model, It looks like it has a 40mm. axle and no front brakes. So that means it was probably intended for use in the 100cc./2-cycle, 125cc./TAG, or the 80cc. shifterkart race classes. All semi-modern 125cc. shifter racekart chassis brands would would have came with front brakes as standard equipment, because they're so dam fast you trully need-em to stay alive...
I think your kart was prolly worth around $500 as a complete/used rolling chassis, and then will be worth somewhere in the $1200 to $2000 range when completed/running with a cleanly-installed 125cc. motocross engine
AND front brakes. Without front brakes, the strict rules at many racelkart tracks wouldnt even alow it on the track for practice sessions, let alone to compete in races...
Heater hose should work fine, just make absolutely sure you completely bleed all the air out of your cooling system so you dont burn that engine up! The radiator in the dirt bike was elevated up a little higher than the engine, so bleeding all the air-pockets out wasnt so critical... Make sure your pressure/water-pump side is connected to the top fitting of your radiator, and also make dam sure your coolant is actually circulating too!
You could extend your throttle cable with a simple cable-clamp/stop,
like the one on this page:-->
http://www.out2win.com/catalog/cables.html#fittings
Yes, it can be very dificult to find cool riding places (the cops wont bust) for racekarts. That's one of the reasons most guys end up racing at a kart track. Another big reason is: Its a whole-lot more fun riding/racing karts against others. If your like me, riding around by yourself will eventually get very boring, no mater how fast your kart is...
Your Caliper most-likely had that 'full of dried up plasticky gunk' simply because someone used the wrong type of brake fluid. The rubber seals in your kart were designed for use with DOT-5 brake fluid.
Lots of times guys dont realise this and ad DOT-3 (or 4) type brake fluid, and this doesnt always mix with DOT-5. After you get that caliper cleaned up and reassembled: go buy a bottle of any brand DOT-5 brake fluid you can find, and completely flush/bleed-out the system with that!