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Sounds like it's time to split the cases. Could be a bad bearing in the tranny. You may be able to do it without removing the head like the other big Kaws. I don't remember what I had to do to get at the balancer. It was in 84 but I think I did it with the head still on. I'm brushing up on the PDF now.
kzrider.com/jdownloads/Twins/KZ750/KZ750...0_engine_rebuild.pdf
Steve

Right on. I'm gunna go thru the manual and get the motor out of my bike. Any tips or things I should look out for on my way? I'm pretty excited to have a reason to take out and open up the engine, I'll figure it out.

Looks like you can split the cases without removing the top end. It does say the valve cover has to come off to get the engine out of the frame. You like all the other motors have to get all the small bolts out top and bottom or you risk cracking a case half.
Post pics as you go.
Steve

I'll get after it on Monday! I don't have a lift, so it won't be easy, but I'll be careful and definitely post pics so I can double check where everything goes back. Anything I should clean and replace on my way in and out? Replacing all of my gaskets is on the list..

You can split the cases without removing the top end!






The full Story (receiver engine broken 3rd. gear/ donor engine broken balancer): www.z750twin.de/getriebe.htm

Like Scirocco said, leave the cylinders, head, and valve cover attached. You just turn the motor upside down, and remove the oil pan and other small components, then remove the bottom case, (which is now on top because the engine is upside down, with oil removed of course).

This will save potentially save you hundreds of dollars since you won't have to worry about head/base gaskets or rings etc.

If you're lucky, you might be able to see what the problem is just from removing the oil pan. So stop at that point and look around before splitting the cases.

I was reading through this thread and noticed, it has been 1 year now since his last note on this.... wonder what the issue was.

I ended up with a 82 kz1000 for almost nothing, and use the 750 for parts. Wasn't worth the trouble for a $1000 motorcycle. If I ever crack the head to figure it out, I'll keep you posted.