I ended up taking off the drum with the two flat heads and the needle bearing looks fine to me.
[URL=http://s1294.photobucket.com/user/CStylianou23/media/photo_zpsb34bfb1b.jpg.html][IMG]http://i1294.photobucket.com/albums/b606/CStylianou23/photo_zpsb34bfb1b.jpg[/IMG][/URL]
I bought this kart used recently and dont have much experience with these motors. Is there anything else I should grease before reinstalling the clutch?