I with @I agree. My father-in-law and I were chatting (subtle arguing) about this yesterday for about an hour. There are many ways to go about getting this kart rolling and in my opinion, I like getting rid of the stock setup and doing to torque converter jackshaft right to the axle sprocket (after moving it from the current location). The best part (as most have pointed out) is that I have options if I don't like how it performs. Thanks for all the advice and help!
I'm with
@BaconBitRacing here. Leave it the way it is, and put the engine on.
With driven pulley mounted to jackshaft, this would give you 2 gear reductions. You will be limited in changing gear ratios, by changing the small sprocket teeth count, under the engine plate on jackshaft, BUT you still have more choices then most, without changing axle sprocket, you have more clearance then most builds that are limited with space and can only change to certain size jackshaft sprockets.
Now with the f/n/r gear box you CAN have up to 4 gear reductions, as the gear box itself is 1.3:1 forward, and 2.6:1 reverse. So if you run a 10t off the gear box to a 10t on the jackshaft, this is only a 1:1 ratio and does not count as a gear reduction, leaving you with 3 gear reductions, and a bunch of different options, ratios to change, with out changing axle sprocket.
BUT, changing the 10t to a 11t on jackshaft, will now give you a 1.1:1, which adds another gear reduction for a total of 4, and now you have unlimited amount of gear ratio choices, which will allow you to choose up to the biggest tires that you can squeeze on that cart, and very easily change a couple small jackshaft sprockets without pulling the axle and changing the axel sprocket, like 99% of us have to do,
Yes, I'm jealous too, so wipe that smile off your face,

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You can easily get a 30:1 gear ratio, on the low side with a 7" driven.
That's enough gear to run down to the Phat Phactory bar and grill, pick up a couple chub-a-licious, starry eyed gals, and giv em both a ride, at the same time.
I can give examples of gear ratio, low and high side, final drive. Jus give me teeth count on jackshaft to axle sprockets.