It dawned on me that the belt is starting from a higher up position on the variator due to the stock rollers (bigger dia) being fitted to the malossi sports variator.
I 'adjusted' a big washer I found to 1mm thick and added it to the washer/spacer on the outer edge of the boss,thus widening the distance between the two halves.
Now pull away is much better, and smoother, and throttle response is good.
The surge is still there, but more gentle.
I have only got to 130kmh thus far with revs at 6+.
If I race up to the 130 then the revs are higher than if I gently climb to that same speed.
Updates to follow.
This detail is here for some other xc500 rider to not have to battle, but just take the nuggets.
This is the stock rollers on malossi multivar 2000 variator with an extra spacer inside the outer face.
Malossi with 14x20mm grub screws
The old Kymco stock rollers, lathe worked to remove flat spots, same dia(25mm)as malossi, with my home made inserts.
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