Most of the G1 owners just remove the oiling system alltogether. Premix with Yamalube or equivalent "air cooled" synthetic 2 cycle oil.
The transmission doesn't have reverse, the engine actually spins backwards. No way to bypass the forward reverse switch in any way.
I'm working on mine right now with a sled engine/carb setup, if you are interested in performance you are in for "hard work". It doesn't come easy on these carts.
Here's a few of my links:
http://www.buggiesgonewild.com/gas-y...ting-cart.html
http://www.buggiesgonewild.com/lifte...sion-done.html
http://www.buggiesgonewild.com/big-b...0-project.html
And don't forget to check the "sticky" at the top about the G1's.