Wtf??

So as I delve deeper into figuring out the white smoke, gas leak, and oil leak, I keep coming across more fun stuff....it looks like I'm getting some pooling by the spark plug. When I took off the exhaust I was shocked how black the ports were...along with the black ooze that came dripping out of the pipe.

It's a 78 650. Any advice on what I should do next is greatly appreciated. I'm starting to think I got in over my head with my first bike purchase.

Thanks guys.

white smoke typically indicates burning oil. Exhaust ports will always be sooty but if they are oily that substantiates the white smoke. Thats a smog valve cover gasket being used on a non-smog head. Non stock head stud nuts, non stock plug caps. if you have been discovering butchery elsewhere i would say there's a good chance this person had the head off and did who knows what. Either way, if you are burning oil the head is coming off to repair that.

what do the spark plugs look like? is the oil dripping down from the valve cover because of the incorrect gasket? if its not, that could mean big problems.

Here are the spark plugs. All look different.
I'm order 1,2,3,4

And it's hard tell if the gaskets are leaking, but they do seem wet, like a sweat.

Plug 2

Plug 3

Plug 4

Looks like leaking...

considering how little the bike has been run with these plugs #4 is very sooty. Is it smoking out of the breather tube?

Thanks Doc for your responses.

Yes, it smokes a little from the breather, but it was smoking from the pipe really bad and from around the headers up front.

Has it been sitting for a long time? If you ride it a bit everything might re seat and not smoke as much. but its looking like you probably need new piston rings at the bare minimum. whats the compression across the cylinders? The oil pooling on top of the cylinder head is really troubling as everything in that area should be dry underneath. if it isn't leaking from the valve cover i would guess there is a crack in the head.

Did someone dump oil down the cylinders at some point to lube them up while in storage? If so that would explain the smoke.

In terms of that oil on top of the engine it's hard to say. You should pull the valve cover and adjust the valves before trying to run the engine. And while it's off check the gasket and torque the head.

It ran when I bought it from the PO REALLY rough in August. I parked it for a few weeks, then it wouldn't start at all. A buddy of mine tried with starter fluid- nothing.
So I took off the carbs, cleaned them up, the jets were a mess, I rejetted them to the stock sizes. Put then back on and she fired right up. I thought the smoke was from burning off the cleaner. It's gotten worse....way worse.

And the strange part is with the tank off and carbs off there is still a puddle under the bike of what looks like gas!