Personally I am a big fan of the old kx250 motor. 10:1 compression, water cooled, 45.5 peak hp, dead nuts reliable, and a nice powerband. A year old one with new parts should cost you $500, less for a couple of years old. The motor is tiny so fitment isn't going to be a problem.
If you want to get really crazy, start hanging around the snowmobile guys and see if one of them has a chain drive motor laying about. I think artic cat has an 800cc parallel twin two stroke that should whip on anything if you can put it in a bike frame.
If you want to get really crazy, start hanging around the snowmobile guys and see if one of them has a chain drive motor laying about. I think artic cat has an 800cc parallel twin two stroke that should whip on anything if you can put it in a bike frame.