The exhaust work I did here was limited to widening the port, and that meant the sleeve wouldn't fit anymore. I did not raise the port as I was trying not to reduce cylinder pressure given the already large squish distance. Dropping the lower port edge does not really change the timing, and on these you WILL free port it if you do that. The lower edge of the piston will open into the exhaust port. The remaining step is not really a problem for flow as it is opening to a bigger area/volume.
If you look at the picture of the muffler, I've cut away a whole section of the bottom of the baffle. Here is another shot of a baffle where I just drilled the holes and one with the bottom cut out:
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The particular shield I used on this saw works the best, as it allows you to cut a big hole at the back upper corner but still directs the exhaust forward and does not melt the chain brake handle. You can do other things though, like these examples:
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I'm a little conservative in muffler outlet size, and my baffle opening is on the bottom in an attempt to make the exhaust gas pass through the lower portion of the muffler. I try for a long path length but low restriction.
I don't think changing the carb is required. The stock 28/64 is fine and I'm not sure I gained much with the 34/64.