Bad news today. Started it up, it started up literally the moment I pressed the starter, it was an amazing feeling. It idled well, warmed up and all was going well. Then I added a touch of throttle, and it died. Started it up again, but it took quite a bit like it was flooded. It seemed to be idling fine, and then I noticed a pretty good oil leak. At first I thought it was coming from the oil filter cover, which would have been great compared to what was really happening.
Shut it off immediately and started cleaning up the oil, and noticed it was coming from the number two header. Cleaned it up, noticed one of the nuts was loose, tightened it down and double checks the rest of the nuts. Started it up again to check for any smoke coming out of the exhaust. There was smoke coming out of both exhausts, whitish blue on number two, and blue on number 1. Shut it off immediately, and noticed there were two leaks in the number 2 exhaust, one was oil, the other was fuel. Plus the number 1 exhaust continued to smoke for a few seconds after shut down.
I'm going to run a compression test on both cylinders, but I suspect the piston rings are gone. It's a surprise as there were no indicators that they had froze up, or were going out prior to this. When I first got the bike it was non-running, but I got it running within a week after I bought it and it had run well for a bike that had sat for years, and had no leaks at that time.
The closest indication, which doesn't always mean the rings are going (as it's not a reading on the rings, just how the bike was ridden and maintained) is that I did the valve clearances, and many of the exhaust valves had little to no clearance at all. For a bike with 19k miles on it, that's been down and the condition I found it in, it tells me it was ridden hard and not very well maintained. I did get the bike really cheap, and haven't put much money into it, just time. Since I've put a lot of work into it, it's still quite a let down.
I'll know more once I run compression tests, but it's looking like bare minimum of a top end overhaul. I may just have to sell the bike as is, or at least the frame and title and rebuild this engine for my racebike.
Here's the bike just prior to starting it up, exhausts were put on just after I took this photo.
I'll post again when I find out more and make a decision.