About those compression numbers: did you check compression with the throttle full open? Just asking: I never saw a variance over 10 PSI across the engine if the valves were good....also, how about the clearances on the rockers? The exhausts should be .003" (.004" if you like big throttle openings) and the intakes .003" (even though the manual says .002" intakes...). If one is tighter than .001", it will drop a cylinder compression a whole bunch at cranking speed.
Thanks mate, "been there, done that", the compression test was done cold (I hadn't attempted to start the engine at that stage, and it had been sitting for many years) with the throttle wide open. I'd adjusted the valves, cam chain, points, cleaned the plugs, pulled the pilots and mains and cleaned them too.
Once I got it going I timed the engine with my strobe light, but I haven't touched it since I posted the original question, so I'll do another compression test tomorrow, when I attempt to get it running again.
I think I'll remove the carbs and clean them properly this time, and I'll make sure I smooth any ridges in the float arms, as I have a leaking "needle and seat" (fuel valve?) and I think the needle is sticking in a ridge in the float arm. Keep thinking mate, any help is good help! Cheers, Terry.