Valve Clearance.

[warp9.9]

Question is.... What should I do now...

I am glad Nev chimed in with his expertise. While you're checking the size of the oil inlet I would use a micrometer for fine precision measurements. Check the diameters of the journals first to insure they are still within the serviceable limits as I pointed to a few posts ago, with the dimensions as they are listed in the book. ( if you want them to end up bigger use a dial caliper ) No sense plasti-gauging stuff if the cams are too small. I found a ported head which has the valves, springs and keepers with cam ladder. I have to see if it has buckets and shims yet as I forgot to ask. No cams though. And the price USD might be too steep for you. I haven't searched fleece me bay yet for anything as I have been working on duct work all day. (sometimes retirement just plain sucks) anyway, $750 bucks plus shipping. I have been looking for engines also just in case it seems better. Sorry I have been no help. And I always use 15w50 except when Carpenter did my last job which has 15W40 but it is getting so close I guarantee it will have 50 weight in her before the end of the month I got 2500 miles on the oil so dumping it is not a big deal.
Back to work as its only 9:45 pm here
Thanks for chiming in @Neville Lush

 

[Neville Lush]

My bad, I missed the snow in the shot.

 

[RooK]

My bad, I missed the snow in the shot.

No worries.

The oil restricter is about 1mm in diameter. My smaller drill bit is 1.55mm and definitely won't fit. Should I consider removing and changing it or drill it bigger?

Camshaft journals are all 22.94-22.95. Still waiting on the plastigauge to measure clearance.

Once all cleaned up for the pictures it doesn't look as bad as I remembered. Intake is worse especially at cylinders 2 and 3. When I rub my fingernail I can hear a "zing" but definitely doesn't get stuck.
One thing I noticed, there are specks on the cylinder head at intake cylinder3.
Better Pictures attached.

 

[RooK]

More pictures

 

[RooK]

I made a couple videos. It seem easier to capture than pictures. I focused on the areas of concern.

 

[Rocket Scientist]

Just my .5 cents worth. The only real fix is to replace the head, cam ladder and cams. I'm guessing it's old damage. I would run it.

 

[Neville Lush]

To me this is typical and common wear,apart from the specks which are probably dirt squashed into the alloy. Your measurements will tell how much. It will probably be in spec. Lots of stock motors wear cam journals with stock idle, and city running. USE GOOD OIL,SPEED UP THE IDLE to 900 or 950. Put a .055" drill through the insert. The later bikes had a larger hole.

 

[warp9.9]

Good words of wisdom. I just bought 6 liters of Motul 300V 15w50 at 12.99 USD a liter WHAT'S IN YOUR MOTOR ?

 

[Rocket Scientist]

To me this is typical and common wear,apart from the specks which are probably dirt squashed into the alloy. Your measurements will tell how much. It will probably be in spec. Lots of stock motors wear cam journals with stock idle, and city running. USE GOOD OIL,SPEED UP THE IDLE to 900 or 950. Put a .055" drill through the insert. The later bikes had a larger hole.

Anyone have a pic of this insert ? I'll do mine whilst it is apart.

 

[RooK]

Anyone have a pic of this insert ? I'll do mine whilst it is apart.

I couldn't get it to show on a picture. It's under the hex plug. Cylinder 3 just next to the intake cam ladder bolt holes. Shine some light in there you'll see it