We did something similar years ago. We ended up with 17/44 gears. With a rider that small, and +/- 40hp, you'll never have a problem with a 17t top. Just make sure you use a chain that is proper for it. Doglegs are the Archilles Heel for chain longevity.
We actually found a tank and seat from a MXZX S-Chassis race sleds. The tank and seat aren't as big and bulky as the stock ones usually found on the S-Chassis sleds. This helped the rider move up closer to the handlebars quite a bit. (I know it doesn't look like a problem, but the fact that the seat and tank on the stock sled are so high up, when riding, it's actually quite hard for kids to ride that far forward. They 'highside' quite easily)
As for the seat, narrower is definitely better for small kids, I built my own seat for it using closed cell foam sheets, however I've seen guys hollow out the stock seat and replace the guts with pool noodles, then re-upholestered tighter to make it look like the seat has been narrowed. The back hump was also cut off but rear storage compartment was kept. 8" bridge and tapered down was just about perfect for my little brother when he was that age/weight.
Another cool trick is to mount a platform on the running boards to give your little guy some leverage. That's the biggest problem with kids and trying to maneuver full sized sleds.
Narrow ski stance is always a good start, glad to see you've addressed that.
And a mountain bar, however useless for most adults, helps the small people out tremendously until they figure out how to throw their weight and use the throttle to get the sled to go where they want. Also, I'm not positive on the throttle, but upgrading to a dual-stage throttle helps kids a ton as well. Either that, or a A/C style lever from the same vintage as they are longer and flatter.
Also, the biggest performance gain is a new belt. The belts for these things are very soft and wear out quickly. However because of their intended function, nobody really notices a lack of performance because....they aren't performance sleds. But fresh belts help tremendously.
When it comes to the steering angle etc, you can move the fuel tank and seat forward quite a bit if I remember correctly. Moving the steering to a more vertical position. Also, narrow handlebars help lots as well. Not ridiculously narrow, but narrow enough where you're young'un can stand on one side and be comfortable reaching over for the throttle. It's damn near impossible to learn how to handle a sled when your weight is off center because your bars are too wide.
Have fun! These things were severely underpowered, but a quick 550f motor swap and it's a whole new sled once your kid is ready for it.
That sled I described was for a customer/friend's kid. We did something similar to my old '99 Snopro 440f for my little brother. He rode it like this for a few years. Had a 121x2 BigHorn track and 17/43 gearing. Absolute RIOT to ride! This particular picture was taken on the trail up to Turtle Mtn in Revy where a group of guys honestly thought we choppered the sled into the riding area cuz they didn't believe that sled, with my little bro riding it, could make it that far into the backcountry.