You should have room to get the cylinder out with the reed valve still attached.
But why? The new gasket is only $3 or $4 bucks (your already going to be out $30+ for OEM head, base and KIPS valve gaskets)and you will probably save yourself alot of aggrivation by removing it. And there is the possibility of damaging an expensive reed cage or the rubber boot.
Ya you can leave the reed valve in place to remove the top end. You might want to take this opportunity to remove and inspect the reeds for wear though.
Don't forget about the nut on the powervalve governer shaft.The nut has lefthand threads.The nut holds a gear on the end of the shaft.Find a open end wrench to hold the gear to prevent the shaft from twisting.
fortunately [or unfortunately] it's one of the few pieces on the whole bike you don't have to remove to get the cylinder off. But, by removing it, there is some free horsepower lurking in there. Note how rough & uneven the insides of all those ports & passageways are. An hour's work with a dremel or round files and some #180 paper -- blending, rounding & smoothing everything out [Don't enlarge the ports] will add power all across the band. You'll want to install a set of Boyesen 2-stage reeds while you're in there.
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