So now that work has allowed me sometime to work on the bike, here is an update.
The second head gasket failed 2 days after installation, except this time I was spewing so much smoke out the left side exhaust not to mention raw oil I could cloud an entire block. My decision at this point was to purchase a good running motor to get me riding for the summer, and I could work on this one during the winter, the purchased runner would then go into a bobber project I've been thinking of doing. There has to be something much deeper happening with the old motor???
I managed to find a motor which had just been rebuilt to be used in a cafe project which is now installed.
Once the swap was done; curiosity got the best of me so I had to pull the original motor apart. With the head off like the previous picture posted there was signs of not only one channel being cut through the gasket to a head bolt at cylinder 2 but to all 4, and visible signs of oil seeping through.
At this point I made an interesting discovery on the jugs. The sleeve in number 2 cylinder has dropped 1.5 to 2mm, no longer siting flush at the top of the jug like the other sleeves. It must have been down a bit during the first installation, but I think it slipped down further the second round enough for me to notice this time around. Not to hard to understand now why I was blowing head gaskets. Mystery solved.
So my decision at this time is to strip and clean the old engine and sell it off in parts.
Thanks for all the help all.