Its real hard to tell from the pict, but is the end of the pipe the same size as the rest of it? It looks like a cone in the end there. You can use a dremel tool to grind some of the material away if you need to. Also I run ONLY high test fuel, and would recommend the same for you. The backfire is due to fuel in the pipe igniting, and is quite normal for any four stroke engine. Last but not least you HAVE to rely on plug chops to set the jetting. I would certainly go up. Try the 95 first, and you can always go back if needed.