I’ve been reading about the fl250 Engine and most seem to say that Honda detuned it quite a bit. What needs to be done to unleash them? Does it affect reliability? How must the clutch be modified to better deliver the improved power production? Hoping to do some work on mine and want to get an idea of what all I need to save for

The fl250's use the cylinders and heads from the MT250, which was the street bike version of the CR250 (73-74). The 73-74 CR250 is considered to have been a great step forward for Honda at the time, but the MT250 was not. The 73-74 CR250 heads and cylinders can be swapped over, and they are considered to be superior. If you add an aftermarket exhaust, change the jetting or go to a bigger carb, and some other mods you can see a boost in hp. The clutches should be changed, as you will need to adjust them to the new power band. Most go with comet 94c or 102, but some powerblocks can still be found. They both use a wider belt, so you need to modify or change out the driven clutch to a 90d, which is also adjustable.