ready to toss a match in my fuel tank!

yeah im just gonna cut the mufflers off and make them work on my bike. i might steal the forks as well because it has the dual disk up front and the fork tubes are 3 inches shorter which will help when i chop the bike.

okay here is a video of what my bike is doing. its between cylinder 3-4 thats doing it both are firing correctly i think atleast getting spark. i dont have a compression checker so thats out but anyway look at the vid tellme what you think.
s59.photobucket.com/albums/g309/radarblu...rent=Picture1027.flv

Have you checked the valve clearences?

Backfiring can be casued by incorrect valve lash, lean running conditions (not enough fuel) or a failed air induction valve (the valve that connects the beathers on the valve cover to the air filter box).

I would start at the valves, that could explain the power loss as well.