Thanks for the quick responses. The motor is air cooled and I have checked the air box. I will check air box again though, I believe there is a breather tube connected somewhere.
Im not the owner of this machine, Im just doing the work on it. Last fall I had two problems to fix at the same time. One was the water in the oil and the other was the shift drum coming apart. Ive had the motor out and on my bench and replaced both left and right hand cover gaskets aswell as that seal on the shaft connecting the recoil.
When the owner drops it off this week, I think Im going to stand it up on end and look it over from the bottom. Im still open to suggestions