There is an oil seal on the crankcase plain bearing, so no oil should be coming out. Have you replaced the four screws that attach the points housing (that work as camshaft bearing) to the engine? The original were slightly shorter, so if you just put new ones they can bottom up before actually tightening the housing and the gasket. The points chrome cover should have an isolating coat inside. If you have re chromed yours and the coating is off, the spark could be jumping to the cover. The problem with revs over 6.000 rpm could be due to a wrong spark advancer adjustmentRaul
Sorry for the delay in responding Raul , was trying my best to get it all sorted for the Vancover Classic Bike Show this past Sunday.
Unfortunately, neither the bike nor the wife were really up to the task. "Patients, "Patients, "Patients, "Patients
I will admit to all at this point to all reading.........., I was so close to it running great, I GAVE up a bit and had the Best Honda Dealership Ever! to look into the last of the last details. I called on Sat at 9:00AM and told the guys I was trying to get her to a show the next day and they said get on a ferry and we will sort it out. They did. still waiting on the seal and all should be well.
I am truly one of the lucky ones here on the forum with a supportive Dealership. They love my bikes! Just a bunch of bike keeners like us here.
No re-chroming, or new screws. Seems the Crank shaft oil seal was gone. "Probably due to my two days of installing and un-installing the cam shaft re-fit trying to get it right. I did in fact get it right if any one cares
The one sided burn was caused by a points grounding issue, a bad points setting to start with, but also a poor spark plug wire connection.
*Dealership also found I had not set the valve clearances. That helped a lot as well.
"Coughs and sputters at anything over 6000rpm" was due to the oil spewing through on to the points.
I did get the digital camera back today, but now the bike is at the dealership until the oil seal comes in.
New photos promised in the next few days to any one waiting to see the finished project.