Troubles in the engine/adjustment part..

Hey guys! 
I'm having some difficulties wit my '79 z1000. I had the engine cleaned and resealed. Ultrasonicly cleaned the carbs and put in new spark plugs, and fuel lines etc. 
​​​​​​After I put it all back together the bike ran perfectly (except for some details) for a good 50km. Next time I took the bike out, it had trouble above 5000rpm give or take, and on full throttle. It even blew of a air filter..
I also noticed that the bike will slipp on the clutch, but only when engine is cold (I think). With the second run the bike lost quite a bit of power so didn't slip anymore. I do notice the bike having a very sharp smell, like unburned gas or maybe burned oil. If I let the bike run for a few minutes in the workshop I get tears in my eyes, it burns:).
I was hoping you guys could give me some advice. I am really technical and know how to properly think, but don't have much experience with this. My next step would be to start changing ignition parts, (it now has a home made ignition with only one pick-up, and mechanical spark advance). 

I'm looking forward for your advice!!

Robert

Ignition timing checked? Does your mechanical spark advancer moves free and is not stuck? Any pics of your home made ignition with only one pick-up would be interesting.

How long was it between when the bike ran well and the second time you took it out?  If it was more than a couple weeks the gas probably gummed things up badly.  Ed

That has been just a few days. Before I took it apart, it had run on 3 and even once on 2 cilinders. Just a few minutes ago I started the bike to, and ran on 3 again...
PIcs of the ignition are attached!

I don’t know much about electricity, and I am completely befuddled by that ignition system. Looks to me like it fires both coils every 180 crank degrees.

The clutch problem could be from poor adjustment, incorrect engine oil, or oil contaminated with gasoline from flooding carburetors. Was the fuel level in each carburetor checked using the clear tube method? Is the fuel valve on the tank operating as designed? Have you checked the oil level since the problem began? 

When you say the engine was resealed, do you mean it was completely disassembled and all of the gaskets, orings and seals were replaced?

Same here, think it does. It's a weird set-up. That's why I would prefer swapping it for a good ignition like a dyna or MSD..

Carbs are completely redone. Had the oil pan of, and all of the side covers, cam cover as well

If your eyes are burning, that is a sure sign of very lean combustion.

Lean? That is surprising to me. I do have open cones with a filter at the end. So first thing is probably to have the bike tuned up on a Dyno.
Thinking about that ignition as well, It would be a waste of time and money to have te bike tuned up with a possible faulty ignition.

wrote:

That has been just a few days. Before I took it apart, it had run on 3 and even once on 2 cilinders. Just a few minutes ago I started the bike to, and ran on 3 again...
PIcs of the ignition are attached!

Looks to me the bike would be firing on all cylinders fighting itself  on all strokes. I don't see how it could run at all  if it's hooked up to just the coils.
Steve
 

I expected it to fire every stroke, but hoe can it be fighting itself, when there is no gas in it the other stroke? Or are those remains? Maybe oil burning? 

Just wondering, because I understand the way you think, but not how it's possible..