The elevation problem is likely mixture, the usual solution is more air. The quick way to confirm that is to remove the air filter cover when it starts to misbehave and see if the additional air helps it run better.
The more permanent solutions are to remove the snorkel from the air box and/or cutting a hole or two in it to let more air in. There's various solutions to making this reversible with plugs or sliding doors you can install. You can supplement that by doing the Z1 mod to the exhaust or getting an aftermarket pipe. Note that all of those will make the bike louder to varying degrees.
This thread has some details though the pictures may not work anymore. Sometimes google will find the pictures.
http://www.xt225.com/forums/ubbthreads.php?ubb=showflat&Number=135150&page=1http://www.xt225.com/forums/ubbthreads.php?ubb=showflat&Number=7448&page=1The alternative to more air is less fuel. The bike should have a #40 pilot jet and a #125 main jet if it's stock. I would start by reducing the main jet 1 size to 122.5 and go from there.
The oil leak... The usual suspects are the o-ring at the nose of the starter, the valve covers, the output shaft seal, the shifter seal, and the gasket between the base of the cylinder and the crankcase.
When my starter o-ring failed, it failed big. It wasn't a slow ooze, it was like a leaky faucet. There was oil everywhere by the time I got home. Thankfully, that's an easy one to fix. Just be careful with the starter bolts, they're pretty long and thin.
The valve cover o-rings are also easy to fix. If it's leaking there, you'd likely smell the burned oil and see it on the cylinder.
The output shaft and shifter seals are usually fairly obvious as well due to their location.
The cylinder/crankcase gasket is the usual "I can't find it" leak and a lot of work to fix. You've got to remove the engine to replace that gasket. Mine has had a slow leak there for years. I just wipe it off occasionally so it doesn't drip in my garage and keep an eye on the oil level. Some folks have had temporary success running a bead of RTV around the base of the cylinder to try to slow down the leak, but replacing the gasket is the only way to stop it.
A simple way to confirm the source is to remove the bash plate and clean it really thoroughly. Then dust the engine with flour or baby powder and let it run for a little while. The white powder will highlight where the oil is coming from.