Sounds good to me, although I'm not sure you'll need traction compound (I'm assuming that's what the "sauce" was) for Ozite. I get enough traction on Ozite with the stock tires and gear diff, maybe that's just me, though. If you are going to use foams, try without the traction compound, first, and go from there.
What kind of power are you putting down? We just glued down the carpet on our 12'x16' tonight. Traction was good with a stock motor, but Xspeed was a little much for the small track. Traction still seemed good with Kyosho 30s. I haven't tried the foams, but they should be hooked up rather well. I've been running yellow springs all around with gold on the center damper. Basically full stiff. I haven't really had a chance to experiment yet. A guy in the Phillipines is running locked suspension all around and likes it.
Sorry, I will be running on a ozite track that has a 60' straight, then from there it's alot of turns then back on the straight... it's an indoor 1/10th scale track. I'm going to be putting in an XSpeed with 7t pinion I would guess.
I used to gear 8T for a 70-80' straight, but 7T would have me topped out in 40'. Given that there's a little more roll resistance in carpet, I don't think that there's 20' worth! I think that 7 tooth might be a little short, but 8 would be too tall. You might try playing with different spur gears to get in between.
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