IMO, aside from the "cool factor" of having a 1 liter go kart, it's not worth it. Extending the frame and adding that weight will do no good for handling, and the engine will spin the tires all the time. Getting a 250cc engine mounted to the side (like you are building now) will give you more speed than is even close to safe with a homemade kart, and still burn rubber on command. A 1000cc engine would be much better suited to a buggy of some sort; on or off-road.
That said, if you already have the engine, and really like the novelty of it, go for it. Just make sure you put a LOT of thought into it, and don't push your limits too far.
Good luck, I look forward to seeing what you build!