Hey Speedy!
A few months ago I bought a 75 CB550K1 for $200.
The bike turned over freely but would not fire up. After cleaning mud out of the gas tank, tearing apart and cleaning the carbs, new plugs, oil and filter change, and some wiring it fired right up! It ran really bad, sounded like a monkey inside the engine, and ran really poorly.
So I decided it would be fun to tear into the engine and a great learning experience. I didn't order parts until I needed them and because I did this what should have taken me a weekend ended up taking about 3 months. After a new gasket set, new rings, some measurements, and a little head work I got the engine all together. I painted it with Duplicolor aluminum engine paint and it looked great!
I put the engine back in the bike and fired it up. It sounded the exact same! After a few hundred dollars in parts and 3 months of labor nothing was accomplished. One night gas leaked out of the carbs and ruined the engine paint I had spent days perfecting. Sad and depressed I came back to the forums to try and get some answers.
After a few of the great guys here helped me out I set the ignition, tappet clearances, rebuilt the carbs and a few other routine maintenance procedures in the manual. Now it purs like a kitten but I still have a couple more things I need to get right. Anyways, the entire time I was in the engine I was just wishing I could be working on painting the tank, doing the electronics, redoing the seat, or getting gauges. I really kicked myself for breaking into the engine when I didn't know for sure I needed to fix something. I just got to this point where the top end was torn down and I was like, "Great theres nothing really in here thats broken and I've just wasted a lot of time and money".
Anyways if you want to get into the engine this is what I would recommend.
First-
Get shopping and buy;
-A gasket set (I used the top and bottom David Silver Spares one and it is the best and cheapest I could find)
-Four sets of STD piston rings again DSS is the best source I could find
-8 Piston Circlips
-Cam Chain (only needed if yours is out of manual specification)
-650 or 550 Cam (the 650 cam install is popular among 550s it gives you more horsepower, I unfortunately didnt have the fundage to do this and mine was in good condition. If yours is bad I would go for this)
-Cam Chain tensioner (only needed if yours is out of manual specification)
-Micrometer, Telescopic Gauges, and Dial Indicator
Second-
Start tearing into your engine use my rebuild thread as a guide if it helps
http://forums.sohc4.net/index.php?topic=63687.0I kind of gave up on my rebuild thread which is a real shame. I would send your head to MReick apparently he can do really great headwork. I don't know anything about valves so I can't help you with the head. Take your engine block to a machine shop and have them measure it to make sure it is within specifications (see manual) and have them hone it. Use your micrometer to make sure your piston is within specification. Measure the Cam shaft for run out and make sure its within specification. If anything is bad buy a new or used one. Put it all together and you've pretty much done a top end rebuild.
I will help as much as I can since I just went through this a few weeks ago.
I really recommend against tearing into your engine. I've made the mistake so if you choose not to I would do the following.
1) Change the oil, and new NGK D7EAs
2) Drain the gas out of the tank make sure it is clean inside. If not ask me or anyone else how to clean it.
3) Take apart petcock, clean, and put back together. If you need a new filter I know DSS sells them.
4) Take off the carbs buy four carb kits at the bottom of this link
https://www.partsnmore.com/cat_index.php?model=cb550&category=carb5) Take apart carbs and dip them in simple green solution. Make sure all passageways are free.
6) Install carb kits and new fuel lines (try autozone)
7) Remove airbox and change out filter (I use pods so I don't know too much about airboxes)
Add gas and try to fire it up!
Heres a picture of the bike now
Lastly, whatever you do DO NOT paint the engine. Use 400, 500, 600, 700 grit sandpaper up to 2500 grit then steel wool then scotch brite red pads. Right now, Im having to scrub off all of the paint and then go through this process!