I plan to have a kart on the healing bench today, so that it will give a photo op to show you how my engine are mounted, and where we weld them.
Flyinhillbilly - how would i anneal and engine block? if i'm not mistaken, i need an oven for that, right?
about the studs and welding the cover - the issue was, that during work the cover bolts would loosen and sometimes unscrew completely, causing the cover to open while the engine is running, if not spotted immediately would lead to a seizure or a cracked block. we narrowed the cause to a combination of bad threads in the block and loose pegs - the two little hollow inserts that help align and hold the covers in place and prevent it from wobbling all over.
the welds are there to deal with the pegs issue.
about the economics of it all, Bbqjoe is right, a clone will make a decent profit for its price, but there is also the issues of safety and customer satisfaction. some of the cracks are right under the fuel tank, and when the block splits open, it rips the nut on the back of tank off, didn't have punctured tanks so far, but it is a risk.