Originally Posted by CurveTracer

With fuel spitting out of the heat sink/head button/engine block the engine will not deliver enough power & torque to shift into second gear.
This problem has to be solved first.
Remove the heat sink and head button. Did the head button have shims underneath it originally? These parts were are not fitting correctly, give everything a careful inspection. Check to see if the head shims are binding up of inserted at an angle.