To do as of 8/30/2012, with parts cost (incl. shipping):
Have new tires mounted and balanced (Dunlop K70 and cheapo tubes, $165)
Inspect wheel bearings
Replace steering head bearing ($50)
Change fork oil ($8)
Rebuild master cylinder and caliper, replace brake line, repaint caliper, install and bleed brakes (Lines $130 M/C rebuild kit $50, caliper piston seal $10)
Finish carb rebuild (sent out to a reputable carb guy) (bowl gaskets and needles $54)
Replace throttle cables ($40)
Lube tach cable
Install airbox, find correct filter element (airbox off a 76 550K $40)
Change engine oil and filter, clean oil pan and strainer ($20)
Adjust valves and cam chain tension
Inspect/adjust points and timing
Inspect/lube swingarm bearings
Clean drive chain and guide
Have seat recovered (sent out) ($100 for cover installed, $40 seat off 76 550K)
$707 in parts so far, plus at least another $50 for the carb work and jets, so let's say $775. Add purchase price tax, title etc. we get to about $1170 cash investment so far.
May need, but don't know yet:
Pamco ignition ($110 + tax & shipping)
Wheel bearings (All Balls Racing, about $37 + tax & shipping)
Fork seals (All Balls, $13 +)
So that would add another $190, bringing us to $1360 cash invested so far.
About 20 hours so far in cleaning, carb disassembly, more cleaning, cleaning, did I mention cleaning?
Probably another 20 hours on the internet researching and shopping.
The frame is covered in a light film of oil, seemingly on purpose. The paint underneath is pristine. Not a spot of rust. Polished a big spot on the rear brake drum to a mirror shine using 0000 steel wool. What should I use to protect it once it's shiny?
Need to look up how to clean the transmission case. Whatever grayish coating that was has mostly flaked off.
Bottom of the engine is grungy. Insides of fenders also. Chain cover very nasty, lumpy oily mess inside. More cleaning.