Kz project

Just about done with this summers project. $100 basket case, probably worth $50 now.
I did have a lot of fun. 
I’ve got all the original suspension and wheels if someone is in need 

Welcome from the UK, that's an interesting looking machine 

100%!!
please do.  I’ve got the rake at 24, 35mm offset,  swing arm at -7, reinforced the swing-arm pivot, shock mount gets more bracing too. 
I set the rear height to stock measured at shock mount.  
I have concerns with that fork putting strain on the head tube, and  offset cog too.  I’m not an engineer.  And perhaps I read a few too many cafe racer articles. 
it won’t be rode hard. 
I’ve got other bikes to ride hard, but I don’t. 
the sr500 was started by someone else. I did put the fork on, tail and got it running. 

any and all advice positive and even extreme negative is welcome. 
thanks for offering!

Yikes, Trail anyone? I wouldn’t ride that hard.  I bet it handles like a kids stand up scooter!

Yeah it’s interesting in 3rd at 6k.  Turned my hair white.
First ride today.
The fork can/will be moved with clip on under triple clamp. I’ve got about 59mm there, and rear shock has 35mm up or down. 
I had an RZ350 spec 3 motor that took a few shake downs with fz600 suspension too. 
I just check rake. It’s 30!?
Hum- I moved the clip on up on top and perhaps the rear tire was low when taking measurements. This will be interesting. 






 

OK so firstly all of the below is based on what I can see in the pictures you posted and is not criticism but rather "good willed observation"

The front end geometry looks very radical, dropping the forks through the yolks will definitely help, the below calculator would be useful to check trail etc
RB Racing Rake and Trail Calculator (rbracing-rsr.com)
It doesn't look like there is much steering lock before the yolk hits the tank (have you welded new "lock stops" on the next to prevent this?
Have you removed the springs and let the bike sit on the bump stops to check clearance (front wheel looks like it may hit the exhaust at full compression)
Also with the rear remove spring and check clearance (chain is very close to the frame and looks like it may hit the protruding bolt above it)
That much "jack up" transferring the weight onto the front along with the radical geometry is likely to make the bike very unstable and also make the rear end very light which could be unpredictable (if you want that "90's streetfighter" look it may be better to modify the seat rails on the frame rather than "jack" the suspension that far)
As a result of the extreme "jack up" it looks like the chain will eat the swingarm above the pivot.
What swingarm are you using (looks Honda or Triumph)- the calliper position doesn't look correct (normally at the bottom) as a result the routing of the rear brake hose looks very close to the wheel, also if "flapping" unsupported the flexi pipe will fracture and dump brake fluid on the rear tyre !!!
Is the picture of the front sprocket the final install? it looks like the nut is barely on and there is no locking device to stop it coming loose (which can only end badly)

Hopefully you will receive all of the above in a positive vein (it is after all only my opinion)

I've done many modern running gear swaps in KZ's and others and regardless of rake and trail etc the lower frame rails need to be closer to parallel with the road surface to avoid it trying to kill you at anything approaching high speeds.
That jacked up look is great for the cartoons and show bikes but not good for actual riding unless the look is achieved by just angling the subframe and bodywork etc and not raising and lowering the suspension.
Those forks can be lengthened by 32mm with a simple internal screw on damper rod extension and coupled with dropping the rear an inch or so will get you a machine that handles much better than stock..
 

I’d put another fastener in the rear wheel. I love the colors on the tank.