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The idle should be around 1700-1900 rpm, at that speed the rear wheel shouldn`t be moving. Not sure how your bloke is adjusting it but if you look in the seat box there should be a small flap which you remove. You should then be able to view the top of the carb and the idle adjustment screw.

As for the topping out on speed, you may have worn rollers in the variator, sometimes they wear flat at one point and stick in the variator galleries. It`s worth taking the belt cover off and the variator and giving it an inspection.
As an afterthought the shop may have messed around with your mixture so it`s worth checking that as well, here`s a link to help scooterdoc.proboards.com/index.cgi?board=intake&action=display&thread=1499

We run a fleet of scoots which are hired out long term, most are 2 stroke 50cc and have an oil level sensor in the tank which triggers a warning light if the 2 stroke oil gets too low.
However we have started running more 4 strokes mainly 125cc in a GY6 format. But we are having problems with lazy/thick customers not checking engine oil via the dipstick, and have had one blown crank and a couple of close calls.
My question is does an oil level sensor exist which screws in place of the dipstick, which could activate a warning light if wired into the loom ?
I`m not sure how practical an idea this is, what with the inclination of bikes when leaning and the splash effect in the sump.
Anybody come across such an item or think it would work ?

Just resting on the hole.

Bloody hell, the gy6 I was trying to start last week had the same problem although my valves had taken a slight tap when the bottom end blew. Only found it when I held the head up to the light. Never thought about mentioning it here as you`d fitted a brand new kit.

Does it make any difference to the starting if you kickstart it ? Sometimes the starter motor will drag too much out of a battery and make the spark weak.
Have a look at the fuel/air screw, if you wind it in and wind it out 3/4 of a turn, that is a good starting point. You can then adjust it out to about 1.5 turns if necessary as that`s the standard adjustment range for 2 stroke carbs.
When you`re cranking the motor and it eventually kicks in, how much throttle are you giving it, if any ? It might be worth checking which slot the circlip is in on the needle.
As Alley said, check the plug for signs of fuel. I`d be surprised if it`s a crank seal problem especially after only 1000 miles. I haven`t changed any for years, the standard of seals these days is a lot better than it used to be.

The mounting screws can be a pain to get out, sometimes a little bit of corrosion builds up on the threads. It`s always worth giving them a whack with something like a brass or steel drift and a hammer to shock them, and then try the wrench or impact driver on them again.