Welcome McS55A. Your saw appears to have an H&S spike, a very nice addition. Personally I don't like painting a saw that has character, I've only had a paint two or three that were just too far gone to ignore. In all likelihood I will have to paint one or two of the 2 man saws I have awaiting attention since 90%+ of the original paint is gone or flaking off.
On your saw, the crankcase and the gear case (filled with gear oil) are only separated by a seal, if that seal is leaking it could be allowing oil from the gear case into the crankcase which would certainly lead to a lot of blue smoke.
Your saw is also equipped with an air vane governor, try forcing the throttle open at the carburetor (not with the throttle trigger) to see if that makes any difference. It is possible that the governor is closing the throttle when you are trying to run at high speeds.
I have a 55 (72cc version of the same saw) that runs very well.
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Mark