Greetings:
Scoring a Dio in any condition from a rubbish heap is an incredible stroke of luck for which many if not all Forum members may loathe you.

Potential aplenty, even from the stock bore. Unless you plan to move to the BBK soon, I would retract my advice favoring the 8.4s. You can compensate a little with lighter rollers in the short term, but I believe 0-10KPH will be a bit painful without the added oomph of 72cc or more. 9s are for sure better for a 50.
Honda sold the 1100XX here Stateside too, and for a year or so it was the fastest production motorcycle made. Honda gave up the Top Speed Chase when the Hayabusa/ZX12 rivalry began, and dropped the 'Bird altogether from its US lineup. Evidently a "Gentleman's Agreement" to keep speeds below 300 KPH was violated by the first-year 'Busa, which came out of the crate capable of 192 MPH by one magazine's test. I'm sure Honda-san had his reasons, but I for one was disappointed that a "Stock LSR" bike was no longer available from Honda. Why are you gearing it down?

Pick your Dio gears carefully, they're a bit of a PITA to swap out. Also verify (and maybe post for us poor US slobs who've never even seen the AF18's innards?) the shafts' diameters are the same as the AF16 gears whose aftermarket is so plentiful. I was happy with the 9s but concerned that a long downhill might spell doom for my bore. The 8.4s are a
bit pokier right off the line, but the difference disappears once the clutch is fully engaged, especially with the lighter rollers.