In my opinion, and based on what peeps post up in this site, not revving out is usually caused by one of 2 things.
1. Fuelling - running lean. This can be caused by a number of things and not just inadequate jet size. When owners fit 'high-flow' (e.g. any non-Honda) air filters, chop parts off the airbox, remove the airbox snorkel or the rubber flap in front of the airbox it can all cause the bike to run lean and consequently not rev out to redline. When lean the symptoms usually get worse in each higher gear.
If all above is in place and original, you'll need to physically check inside the carbs yourself to see what jet sizes are in them - that's the ONLY way you'll be sure of what's in them. When you say carbs were set up to 'original' spec, if 'original' 110 size main jets (as standard on 1989 model bikes) were put in in it can run lean and not rev out properly, I've seen this before....
2. Electrical problems. These bikes have a poor history of an inadequate charging system which can manifest itself as all sorts of running problems. Backfiring is one of these symptoms (as unburnt fuel gets burnt intermittently). You'll need to use a multimeter and check the charging system all over, it's quite simple but important to do all checks and write down the measurements. Dodgy coils (you can check these with a multimeter) and cdi's can also cause issues, but this is not as common as a faulty charging system.
A document outlining the charging system checks can be found here:
http://www.400greybike.com/docs.htm
Lastly, have you actually ridden this bike or are these problems happening when the bike is stationary? If this is happening when stationary there are a couple of other things I would check, but get back to us on above first.
