Well I have finally found an engine that is going to work, To anybody that wants to drop a new engine in one of these the Honda GX390 is the best engine for the job. Its a 12 hp cranking out 19.5 ft. lb compared to the the 10hp 14.47 ft. lb of the original Kawasaki.

The Honda has an option to come with an electric start and it has a standard 18 amp charging coil. With the Gas tank, muffler and air filter removed form the top of the engine it will fit into the space and will only need a muffler fabbed up to it, the air filter run out somewhere fairly clean and dry and an electric fuel pump, then it should work better than new.