I can't remember exactly what the compression should be, maybe like 120 130? The piston and cylinder don't look bad at all to me though. There's a little more carbon on the valve than usual, but I don't think that's really an issue.
I used to pour a little water into the carb of a revving engine to clean up carbon. I would use a dixie cup and slowly pour it in while revving the engine. It causes the carbon to crystalize and shoots it out the exhaust.
Are you sure the exhaust doesn't have oil in it? How does the buggy run despite the smoke?
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