1982 kz550-c tick/ knock about 3500 rpm

Is this too stretched? This is the chain position while timing marks we lined up.
Also there were three valves .001 mm too tight

The manual has a service limit for the chain stretch on page 164/165 of the red base manual. You measure the distance between 20 links. The limit is 128.9mm.

But I am more concerned about broken guides. Try to look into the chain tunnel with a flashlight and mirrors and inspect the guides and presser for the tensioner.

The guides have some noticeable wear bit none are broke. The guide that gets pushed my the manual tensioner has maybe 1/16" groove where the chain rides. I don't have a good way to check chain length but by your reply I'm not too worried. I'm starting to get scared it's somthing down low.
I am ordering two shims to give some more room. But they were only .001 too tight on all three. I'll shim to bring them to the wide end of specs.

Just an update,
After shimming the valves and re assembling the bike the noise is exactly the same as it was before.
I still have high hopes for an exhaust leak as i have been riding to and from work almost every day lately figuring if a total tare down is in order might as well make it a complete rebuild.
actually i have just gotten really busy with work and hate driving my truck anymore.
but yea i have put 500 miles on it in 13 mile trips back and forth to work and have zero change in power or performance. just an annoying tick. surely if it were a major mechanical collision i would have blow the thing up by now?
no?

I've also had noises like that in the past, replaced copper exhaust gaskets with new& whalla, the noise was gone !!
Hope it's that simple of a fix for you, as you say the bike runs fine other wise & for $8.00 or so it would''nt hurt to try

Yea I hope so too. I put gaskets in it but I went ahead and bought 8 new and high temp sealer. I'll throw some doubled up gaskets in with sealer between as per google directions and pray. But if not I guess it's a good thing I just replaced the primary chain for my brothers xj650 so I know I can split the case and be successful

well i cant believe it but i put in the new copper rings with some high temp rtv last night and this morning was the calmest ride to work i have ever had on the bike!
there was zero knock until it was warm in when i got to work and still it was very faint compared to before .
i chalked that up to the nut that i stripped getting just one more turn.
i guess ill check out z1 for some new studs.
im guessing there is a better way to install the exhaust also?
i had a hell of a time getting the brackets to line up after putting in the new gaskets.
maybe the misalignment has something to do with the exhaust leak?
Thank you for all that replied.
i still need to re sync, i think i can get better than the 45mpg i just got.

When I have to install double copper ring gaskets, I Krazy glue them together first so they will stay aligned during installation.

GLAD ta hear, Dbuttsvfs, I know that noise had ta be driving you CRAZY,
Pete

sure was! but what really bothered me is what went through my mind as worst case possibility of cause.
everyday i rode to work i was literally expecting the lower end to self destruct. and no matter how much i tell myself i didn't care if it did, it would have killed me to see something i put countless hours into this winter have to be totally re stripped.
It was an indescribable feeling of relief.
Now i can take down the for sale listings lol

I had the same thing on my 750 twin: even if I installed new exhaust gaskets, I would hear a loud "crack crack crack" sound that got louder as the RPM went up.

I learned the hard way that one of the ports requires a double gasket. Always the same side, did it with three different exhaust headers.