Did I read something about clutch/tranny weaknesses on these?
No. They have improvements over the CB500.
The 78 carbs were finely tuned to the exhaust and induction. Changing either means a carb jetting/adjustment endeavor, that most do not understand.
They are a very good bike in stock form. Can be problematic and frustrating when modified.
The head gasket weep is pretty common. I ignore it, wipe it off once a week as I don't believe it's work a tear down to fix two orings.
The cylinder cover (cam cover) has rubber "pucks", like filled orings, that harden with time/heat. Not too difficult to fix that if you heed the shop manual warning about valve adjuster/valve stem interference (get that wrong and you bend several valves $).
A 35 year old bike will need all the electrical connections cleaned to keep it reliable. Oxidation takes it's toll.
If all original beside paint and unmolested, an you can drive it, $400 ain't bad.
You'll have to be careful during the carb clean to keep from damaging the carb couplers. Can't buy new ones anymore. And using the older style couplers is a hodge-podge fit.
Cheers,