After taking apart my engine i've found alot of carbon deposits (no surprise) on the cylinder head, valves and just inside the whole combustion chamber. Whats the best way to clean this off? Do i use some kind of drill bits to get a good finish???

Depends on what the head is made of AFAIK. Brass wire brush and carb cleaner worked well for me on an alloy head recently.

Cheers

Have used gasket stripper out of an aerosol with good results in the past, suspect that paint stripper would work well as gasket stripper seems like nitromors, hope this helps , Rusty.