Those were great bikes,I had one and loved it.Since then I've had a string of RM's I have used for Hare Scrambles and Enduros.You've been getting some good advice here.
First,I'd make sure the compression in the engine is within specs,then you're not chasing other problems that are really a worn top-end.If thats ok,then I'd make sure the powervalve is at the stock adjustment.Now it's time for jetting.Get someone experienced to help you,those bikes could be made to run very crisp,top to bottom.Just don't start chasing jetting without knowing your compression is good,your air filter clean,and premix fresh.The stock exhaust and muffler sucked,I'd run an FMF Gnarly or ProCircuit Platinum 2,and jet from there.
The gearing is a personal preference, but a couple years ago I noticed the GNCC Pro's would actually gear their bikes a litlle UP ! Sure,they're way faster than me,but with a properly tuned motor,their bikes already tuned for a lot of low end via pipes,jetting,etc., you can make the motor pull by short shifting and have a much less tiring experience.Too low can make your bike wheelie prone,and you'll not even use first and sometimes second,because the bike just wants to stand up.
For instance,stock RM gearing is 13/49,Team Suzuki Off-road usually runs 14/48 or 49.I went to 14/49 and completely love the way it works.Good luck with your bike,and while you're working on it check every nut and bolt,especially the engine mount bolts.Loose or gone engine mount bolt = cracked frame. Doug