Actually a 109 has plenty of power wth a hydro and a smaller motor.
I was able to pull a very large amount of stone boat weight with my 1250, running well but stock... Your minor head gasket leak and other issues are cutting your power way back.....
You will be pleasantly surprised with what a qualty rebuild will do for you.. Take your time and do it right....you won't be sorry.
A suggestion on finding a good local machine shop....ask your local small engine guys who they use..and ask at your local NAPA store. I tried a google search, any of these places sound familiar?
http://www.google.com/search?hl=en&s...AAAKoEBU_Qcutc