Stalag... This is likely a thread that belongs in the engine forum. I will let this go today but if it continues to turn towards your cam shafts, cam chain and smog stuff, I think it would be better in the engine section... sometimes it is a hard call if the problem spans both engine and carbs.
As for an answer to your problem, the ATU is the cannister your vacuum hoses (from the carbs) connect to? This thing is used to open/shut your reed valves. The reed valves are tied directly to the combustion chambers. I hadn't really thought of it before but if the reed valves stuck open, you would get flash back visible through the tubes. Since the problem is either the ATU is junk (I suspect I have a good one if you need it) OR the reed valves are sticking open (I don't see how they could), you have a choice....
Either get a new ATU and see if that clears the problem OR block off the reed valve ports on your valve cover and cap the vacuum ports. Just make sure the reed valve covers seal good and that the reed valve are closed beneath.
As far as your cam chain... THIS IS AN ISSUE. If the chain seems to be buckling or bunching (however you describe it) when you turn the engine by hand there can only be TWO possible causes to my way of thinking...
1. You need to pull the cam chain tensioner and ensure the rod is popping out when it is released. I know you have done this but the inside of the tensioner body can sometimes get scored and the rod CAN hang. I have had this happen. You should FEEL the rod pop out when you release it. If you did this to your satisfaction and you are SURE the tensioner is OK... then...
2. REPLACE CAM CHAIN AS IT IS VERY VERY VERY STRETCHED. You risk significant engine damage when the thing jumps a sprocket tooth as the bike is running. If you have all the tensioner bits in place and it can bunch that far, the chain is SHOT. I know that SOME Hyvo chains have a master-link replacement so replacing the cam chain is a snap. The only issue will be the need to buy a tool to break the old chain and press/stake the pins on the new. These tools are kind of pricey. Contact
www.z1enterprises.com for a new chain, master link and tool.