The bike is a 1974 CB 200 but I'm sure this applies in general.
I'm having a problem removing the bolts on the left side crankcase cover. Everytime I apply torque, the head of the bolt begins to "tear." I was thinking of just shearing them off with a dremel and pulling out the threaded portion and replacing them. Does anyone have any suggestions?
Many threads on this subject. First tool of choice: use a hammer impact driver. (search) You don't want to apply slow torque, you need IMPACT. With confidence and technique that should get them out.
If that doesn't free them, then you can get medieval on their a-s! If you've already messed up the heads, again search for threads, but ultimately you'll have to do whatever you can. Centerpunch and drill the head portion off. If you can get all the heads off the cover will come off and you can grab the stubs with vice grips and probably break them off, then drill them and break off an EZ out inside of them, then take a sledge hammer to it.