If I were going to spend the money on an SLP single, well I wouldn't. SLP twin pipes pull hard, and unless you ride some significantly different altitudes on a regular basis, they are not a pain in the *** like so many will tell you. I run mine from 9500' to 12500' without issue, and no I am not changing jets when I get up high. These 800's seem to do OK with a little extra fuel (aka when you climb higher than you're jetted for). Just don't run them lean (like try to ride 6000' feet when you're set for 10,000').
As far as beating an 09 M8, that'll be tough. But you can get your sled to be close to his without getting too wild. Sure it won't handle the same, you will work harder to side hill and boondock, but you can certainly still have some fun.
I run 10-60 weights, Team bright green primary spring (150-340), 64/38 .36 ER helix in a Team secondary with a Team black w/ purple stripe spring. Yellow SLP exhaust valves (high altitude reduces cylinder pressure, so the valves don't open when they should if you still have the stock exhaust valve springs). 330 mains, 2004 needles & needle jets in the #3 position. SLP twins pipes (the race version, though I f***ing hate how loud they are, soon to change that). SLP air horn in the air box, SLP flowrites on either side of the gauges to let more air in (I also deleted the speedo and headlight, replaced both with vents). My sled pulls 8000 RPM, so I am soon to drop to 10-58 weights to get that up a little higher, but its still strong even at 8000 RPM.
Use plugs and piston wash to dial in jetting. You want the burn ring on the ground electrode of the plugs to be at the bend. And wash should be finger nail sized clean spots on the piston tops where the intake ports/transfer ports line up. You'll have to either pull the pipe (and probably the Y-pipe) to check this, or pull the cylinder head (I don't how anyone could see wash through the plug hole).
Some maintenance items that can hold you back:
-stuck exhaust valves (need to remove them and clean them)
-ruptured exhaust bellows (they will leak oil/goop out the tops of the black caps if they are ruptured)
-bad driveshaft or jackshaft bearings, either on the PTO side or in the chaincase. If they're OK, shoot some grease in the PTO side bearings.
-bad idler wheel bearings, though you usually don't make it too far if these are bad
-broken or missing exhaust deflector (its like a little fin that cuts a trench in the snow for the exhaust gases to escape into, located just forward of the exhaust outlet).
-bad temperature sensor or one on its way out (sorry I don't have the resistance specs @ certain temps on hand for testing yours)
-dirty clutches. use steel wool and hot soapy water to wash them and the belt.
-worn out clutches. Specifically check weight bushings to see if they are hitting the spider. Also check springs & primary cover bushing. Make sure your secondary has some (between 1/16" & 1/8") float on the jackshaft.
Well, I wrote a hell of a lot more than I intended to. Hope this helps.
What sort of terrain do you ride (trees, big hills, meadows, trails, everything?). What track is on that M8 and is the sled stock?