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Thanks to all for their comments/pics on the starter clutch gear issue.
I tried to get the worn portion hard-chromed and reground to spec but the guy I spoke to who runs a hard-chrome metal restoration business said his equipment couldn't do the job.
So I bit the bullet and thought that there must be tens of thousands of Zeds across the globe with similar wear on this gear and pushed ahead with the rebuild using new rollers, pins and springs and new high tensile steel bolts to clamp the clutch body to the alternator rotor.
I had been having problems with the bike running rich so I did all the right things - cleaned and blew out all the air passages and jets, checked jet sizes, checked choke plungers closing fully but found that the float levels were about 4mm too high!
So adjusted those - not easy, 0.3mm movement of the tang on the float equals nearly 4 mm fuel level change!
Anyway went for a start and got a few pops and bangs and spits back through the carbs so thought - OK, that's it you're going to the doctor - I just want to get this back on the road, I've had enough and I could be chasing my tail for weeks!
On the spur of the moment I went and bought another brand new set of B8ES plugs and put them in. A couple of cranks on the starter (which worked just fine) it fired up and quickly settled into a steady idle (still a bit rich) with good throttle response!
My mate Tony and I just looked at each other and said (apart from a few other words) - "Do you believe that?!"
Looks like the plugs were still fouled even after a good scrub/clean with wire brush. So the bike is at the mechanic getting a final tune-up - hope to get it back on Thursday ready for registration - will keep you posted and put up some pics of the final product!

Plugs can be bad even new. I just got some yesterday because I was running winter plugs. B7ES as opposed to B8ES. Put them in at the store, big difference. Going out to dial it in now.
Steve

Scratch that photo Weales lol. Turns out I have been following your project! Looking mint too!

Ok, today - Sunday, Australia time, I completed putting it all together. Had several attempts at fitting the fairing/headlight assembly as I didn't have some of the dampers and had to make my own, and my mate Kev noticed that there was no clearance between the fairing "arms" and the mirror mounts. looks like the bars may be not Z1-R and are too short or it could be that the switch-blocks (which are Z1000) are causing the problem. Anyway, moved the grips outward on the bars by about 10mm and it all fits ok.

Just got to change the alternator gasket as it's weeping a bit of oil, and we're off to get the bike inspected and registered. Weather has been crap for the past couple of days and more to come ,so might have to wait until it clears a bit.

Photo taken just after I put the tools away for the night - it needs a good cleanup and polish to remove dust which has settled during the rebuild and to bring back the sheen on the metalwork and paintwork which has dulled a bit (and the fingermarks!)

NICE! Ed

Sweet! Would love her in my shed!