Alright, I've come to the point where I might just take my bike home do it myself and hope for the best. My local motorcycle mechanic shop or shop near my Dad's house, called today asking how to proceed.. I'm on good terms with the owner of the shop so he gave me the call. He gave me details from the mechanic assigned to my bike but it was almost the same from a brief conversation we had late December.
-Passed leak down test with soaring colors
-4-6% efficiency loss across all cylinders
-carbs unsynched
-black smoke continues to plume out of right exhaust (exhaust #4)
-too much oil pumped in? (guess work)
Going over what was suggested by Bodi: The cylinder head gasket was from a gasket set from 4into1. The gaskets for the two dowels and two oil control valves between the cylinder and head were purchased from Yamiya750. The dowels are all new, but the oil control valves are original. They should not be blocked because I have soaked them in acetone and have blown pressurized air through them several times (without soaking the gaskets). The owner of the shop said damaged rings could cause black smoke or oil to burn, but the leak down test would have failed. The head and cylinders are flat though they were not done together, but the previous head had similar symptoms and it was milled along side the cylinder rack. To see if I had improperly installed the head, I asked them to install and torque it. I remember when I installed it I had a slight oil leak at cylinder #1. I might have been obsessing, but I could have sworn i saw a bit of yellow oil underneath the grit of the Cue Tip I used to swab the compressed gasket. When they installed it, it did not leak. However, they still came across the same problem after installation, it still bellowed out black smoke from exhaust #4.
Remcod: I have used spray on copper sealant before and I failed miserably. I did per instructions but I had a better seal without the spray. I used Permatex copper spray, but I didn't have someone else try to assemble my head with a copper coated gasket. And what I said before I bought dowel and oil valve gaskets from yamiya750, whom I've gathered sells quality gaskets and o-rings for old SOHC4s.
I have come to the conclusion that the cylinder rack itself has not been ruled out. Piston are good, rings good, everything above and below good. I have not done a magnaflow test on the cylinder rack. Aside from the transmission, crankshaft, oil pump, oil filter case, oil pan components, alternator, crankcase covers, half the crankcase studs, cylinder rack, valve cover, breather cover, and oil pipes the engine is completely different from when I first bought the bike. Almost half the engine is brand new maybe more. The one thing that does have me on slight edge with the bike is the crankcase studs. I replaced half of them in the process of transferring them over to another crankcase, but I'm just doing a running build not performance (long story why.. i broke it). I also rebuilt the transmission with new cotter pins and thrust washers and the primary shaft has new rubber dampers and the crank and con rods have new bearings. And... I did choose the right bearings and never again will I do so for any engine.. I have to stop myself from listing all the reasons why it should work.
I'm eventually going to take it home within a couple of weeks, synch the carbs, and run the bike. It could be residual oil in the pipes from whenever oil leaked in them previously.. but they are new 4into4 headers.. Maybe actually riding it around could help, but I still don't know if it will run at full power after the carbs are synched. The carbs probably need a good soak. Lucky for me I can reuse the same jets, because I bought all their o-rings in bulk. They have only been in for less than 4 months. No sense on throwing away perfectly good jets over new o-rings. I also traded most of the Buna S (nitrile) o-rings for longer lasting Viton o-rings. Harder to work with but pay off in the long run.
If I were to disassemble my engine, should I flush all the remaining oil in the cylinder head oil galleys with spirits/acetone after draining the oil? If I did, I could remove the head without residual oil dripping/seeping onto the gasket after being detorqued and removed. And thus have a better reading of what my gasket is trying to tell me. I lost a torque wrench in a flood so I would need to get another one of those before even considering, and my Dad wouldn't be too happy again with me taking up space in his shop again.
If anyone has any breakthrough discovers on why CB350F engines bellow out black smoke even after several rebuilds, please let me know. This has to be one of the great mysteries of the world along with aliens and whether or not dead famous celebs are still alive somewhere hanging out together.