Yamahawk, it's def oil. It's coming out exhaust port & also dripping from 4-1 collector under bike. New fuel tap. Tested it with fuel hose off. It doesn't pass fuel in off position. Fuel tap religiously is off when not in use.
Roto, good suggestion. I'll do that.
Mad, yep I understood the breather was meant. Its on valve cover, is new and is not kinked. Same with one off back of gearbox that goes to oil reservoir.
PeWe, the clearance is measured where you state ie just up from the skirt in a front to back direction. It does look like more, but piston is tapered. The proof will be when I measure, once I can get barrel off. It's not moving without putting up a fight!