Dave, use a 530 chain and find a 40T rear sprocket, lots of suppliers for alloy ones around but steel is quite a bit harder to find.
And yes, there is some machining involved. Why not just go to one of the people who's done this a lot, there's several scattered around the world but Keith N. at laverdascozia.com knows what to do and how to do it, has done quite a few successfully, and may even be able to supply you with wheels already done (and a sprocket). There are several options, speedo drive, what brakes will you be using (good idea to upgrade at the same time, in fact you have to change the rear brake completely at the very least), what size axles, even which Suzuki wheels will you be using (750 are different from 1100), maybe even a swing arm upgrade?
Unless you know a good, well-equipped machinist who does the work because he loves it and doesn't have to charge by the hour (or if that's you), it's honestly best just to go to someone who's already worked out the bugs. I spent far too much when I tried to coordinate it myself, and then I had to redo quite a bit because I got it wrong the first time.
Ken