Hi,
I just had the same problem you have on your bike. The difference is that I installed a brand new 70cc. kit to my boys Gas Gas TXT 50 and when I turned it on the noise on the cylinder was identical to what you describe: A can half full of nuts and bolts going up and down ! I called Jim Snell from Rising Sun imports and through the phone he heard the motor running. Imediately he told me to take it off and to send it back and that he would refund me the money. He tod me that something in there was not fitting properly and he decided not to start wild guessing which part was causing it.
In your case I would guess it might be the cage that goes in the top of the rod, and the pin might be a little loose in there.
Hope you fix your problem