...how much should i deck the head?30,000 or 40,000? i am using a copper head gasket. .016 thick. Also should i take some off of the block.
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Whew! Ya know, they invented capital letters and paragraphs for a reason...

Also, hard to take 30,000 or even 10,000 off of a head that's no more than 6 inches tall - you're still 9,994 inches short.

Okay, I'm just being picky and harassing you, I'll stop now.
I've milled heads and decked blocks, but not on these small engines. I can say that you're asking a BIG question, and the answer is:
"It Depends":
How far 'down in the hole' are the pistons now?
What rpm are you going to run?
What static compression ratio do you want?
Is the cam going to be installed X degrees, advanced, straight-up, or retarded?
What dynamic compression ratio do you want?
What quench height (closest distance between piston top and head) do you want?
What connecting rod are you running (need to know how much it stretches at high rpm, quality rods will stretch less)
What piston - dished, domed, flat-top, valve-reliefs?
What minimum valve-to-piston clearance do you want/need?
I'll say that in the V8 world, most guys with combustion chambers similar to a clone engine (a mostly "open" chamber in the head with a slightly dished piston) shoot for something like .035" or .045" quench height via zero-decking the block (piston tops come right up to the deck) and using the head gasket to set quench height. If you're going to use a .010" head gasket, you'd want the piston .025 or so down in the hole - your machinist would then cut the block to whatever dimension that it.
I would suggest 3 things;
1. Head over to a racing kart forum like
http://karting.4cycle.com and do some reading on specific engine building / machining practices and dimensions, and
2. Play around with an online "
Dynamic Compression Ratio Calculator" and get some ideas on how different setups would work.
3. Find a GOOD machinist who has worked on these engines before, he'll be worth his weight in gold.