TOPIC:

I'm assuming it's ok for the inside of the stator cover to be full of oil? Should it be full or should it have just a dribble? Why does it need oil in there?

Thanks.

To lube starter gear. There should be a small passage going into the engine if you look under the alternator.

Actually, the reason oil is in your stator cover is that Kawasaki put the oil journal in there so that oil would slowly leak out the plug where the wires pass through. This is sort of a "fail safe" method of ensuring engine oil is changed as you will continually need to top off your oil with fresh oil to keep the sump full. The "leaky rubber plug" engine oil replacment method is only one of the ways, Kawasaki engineers were thinking about you when they did their careful design of the early KZ engine!

I always thought it leaked to keep your boot lubed so shifting was easier!