I beleive you can bump up the compression by swithing to a GSX-R head from the 750 slinshot motor as well. If you can find one, I think it just a bolt on. My racing(not this year) is on road course vs the strip, so I don't know if all the effort would be worth it. I think better lap X for me would just come through more seat time(and more $)(good tires)rather than trying for more HP.
I'm talking 1st Generation Bandit anyway, not sure about the 2nd or 3rd and of course the new water cooled is a different beast. Dan