I was messing with my 260 today, The 250 looked to damn hard to take apart just for a polish. Anyway, the base gasket ripped when I pulled off the jug, I am thinking about leaving it off and seeing what I can get out of it.
If you eliminate the base gasket, you will need to use a liquid gasket type sealant in it's place, one that stands up to gasoline, heat, and pressure, or at least make yourself up a thinner gasket with paper or metal. You also need to check the clearance at the top of the piston with the combustion chamber, at top dead center in the piston's stroke. Around .020" is the general clearance recommended for a working saw to be safe. If you get too close, the heat becomes a negative factor, can melt the piston crown. If the piston touches the top of the cylinder, likely bye bye saw. Expansion occurs with heat, that's why the clearance is necessary.
In addition, when lowering the jug, you have to make sure that the intake port is still covered by the bottom of the piston skirt at 180 degrees after top dead center, that is the lowest point in the piston's stroke.
It's not difficult to check any of these things.
By eliminating the gasket, you'll definitely up compression, but how much depends on the piston clearance. You'll end up with more torque likely, but for best advantage, the cylinder ports need to be worked on and raised and widened as well. Just lowering the cylinder changes the timing of the engine, the point in the piston's stroke where the ports open and close. Raising the ports at least back up to stock timing, is an accepted way to get good safe power improvement with a working saw. Race saws generally push the envelope more.
Hope that gives an idea of some of the basic processes involved.
Jay