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ohhh yeah, you'll find that oil brand, viscosity, everything makes huge 'feel' difference in the shifting and the clutch operation. Thats true for all motorcycles, especially sportbikes and obviously, since viscosity decreases exponentially with temperature, the operating temp of the oil makes a huge difference.
the generator/magneto assembly is in fact oil bathed. that is kosher.
the oil that was in there before might have been super low viscosity and not necessarily way old and worn out. As long as you don't see any glitter or notice any milkiness or weird smells (gasoline smell implying there is gas in the crankcase, milky is water, duh) it should be fine.
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