Stick a 158 jet in it and if it doesn't pop, then stick a 155 in it.
The 168 is the safety jet that Rotax supply.
It could be that the engine has never had a bottom end rebuild and needs the the end float done.
A compression test could be useful and seeing as you have no seal on the reed block or water cap, you could whip off the cap and head and just check the ring isn't stuck by wobbling the piston.
If you suspect the power valve, you could jam it open with a piece of fuel pipe under the bellows and see if it revs once you get on a straight.
Oil leaking from the exhaust header indicates either a blocked exhaust or a poor fit.
Do you have two springs on each side?
I see your track is Fulbeck, do you live locally?
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