Have any of you guys milled the heads to use a modern say .041 head gasket but still maintain the factory compression ratio?
This is a critical area of the engine build for many reasons.
The factory had the pistons .020 to .025" in the hole. With the thin metal head gasket and a 64cc head, you would be lucky to see the advertised 11:1 compression ratio. During tear down this was all checked, with pistons in the hole pretty far, heads that CC a little large because the valves had sunk, my DZ had at best 10.5:1 to 10.7:1 because the deck height was uneven and quench was terrible. (it's why these engines come apart on day one for stock eliminator blue printing)
Since we are talking about detonation, the ideal situation is to have tight quench. Most engine builders will shoot for a total of about .40 to .45 quench with steel rods. The tight quench promotes combustion motion/mixture and fights off detonation, also needs less ignition lead to make power. Lots of benefits with this. The worst way to go about this is having the piston in the hole and a thin gasket.
The best way is to have the piston near zero deck and adjust the quench with the gasket being used. You can get zero deck a few different ways with rod length and piston pin height changes, but it adds to the cost with custom parts.
On my build, knowing what we had to start, we decked the block to put the piston .005" in the hole. But you have to find a machine shop that is willing and able to deck the block without removing your engine stamps. With that said, I then used a .038" gasket. .043" quench is what we came out with. We only gave the heads a clean up mill because we didn't want to shrink the chambers much, and used the JE factory replacement style forged .030" over pistons. We came out with exactly 11:1 as measured.
Lots of engine building tricks like this, that help make power and in this case, makes the engine a little more octane tolerant.