mmm Hi Josh84, Maybe you should start a new thread in engines, and link it back to here once you've finished... Otherwise no-one will find it in "Victa walk behind rotary mowers" section.
Anyway... what you do and how you do modify you engine is entirely dependant on what tools you have and your budget (skills also, but we all learn eh?).
I would suggest the following are required (little money basic as, but big grin performance):
1) Sharp scriber with a 90 deg bend on the end
2) A texta (aka mark out dye)
3) A 1/4 or 3/8 high speed drill(optional)
4) A selection of metal files; round, and square of various sizes
5) A set of needle files (some round with bent ends)
6) A few grinding/polishing stones for the drill (optional)
7) A combination square, (and one with centre finder attachment, optional)
8) A bolt with a slot in it for wrapping wet n dry around for polishing (optional)
9) A few sheets of wet and dry paper grit 120 to 400 (and finer if you like)
10) A calculator (unless mental/manual workshop math floats your boat)
11) A work (lab) book to keep notes/methods and ideas at hand and together
12) An old clean piston that fits the bore
13) Solvent and rags
14) A clean work area, clothes and hands (eating quality clean, not optional)
15) One hundred times more of the amount of time
you think you are going to spend on doing it16) At least five times the money you think you are going to spend on it (cheap version)
17) A better way of holding the motor than the vice! (the kart engine mount for example. I had a finished motor smash on the ground, as it "popped" out of a vice)
Start a new thread in engines and I'm sure the opinions on what and how much, where etc. will come. A few upto date photo's and work inprogress shots will keep us interested

otherwise I for one will tend to