you bought that from Skip (aka Timcat) didnt you?
i tried to explain all these things to him back in the day about how the longer the down tube the sooner the 'powerband' hits. I tried to explain to him that with a down tube that long its questionable if you will even hit a powerband, but he was high as * and had a hard time following anything i told him.
First things first your gonna want to shorten that down tube to as short as possible. Next you are going to want to take a wire brush (for like cleaning shotguns and what not) and use it on the down tube to get any built up carbon out of there. The most important thing on a two stroke exhaust is flow. If there is any thing slowing up flow, or any carbon that will disrupt flow it will throw off everything.
Also, when it comes to putting this bad boy back together you are going to want to two ends to butt up perfectly, then weld around that. Sure, if one end slides into the other end it may seem easier, but it will really mess up the
echo effects that two stroke chambers need.
Make sure you wash the pipe out nice a good before you try to run it. I like to use a little carb cleaner followed by compressed air. MAKE SURE YOU CLEAN IT. If there is some metal shavings in there, the first time you fire up the bike those shavings could get sucked up into your cylinder ruining your top end in seconds.
As for the silencer (the very end part that is red). Im not sure what timcat might have stuffed in there, but it would be smart to take it out and repack it. You could run to a dirtbike store and buy some silencer packing for like $15

. or you could go in your attic, your garage, or your buddy's garage and steal some insulation out of the walls. Its free, and its works just as good (if not better). Find a long screw driver and pack it in there. you want to avoid getting any in the center tube, but you want to pack it all the way around it inside the red tube. (sorry im bad with explaining things).
Dont forget to clean it out before you use it, and you should be ready to rip.