Thanks Larzfrommarz,
I wish I had a manual, but unfortunately I do not. Being that I am impatient, I tend to dive into things and just take a lot of notes as I go. Works for me most of the time.
I should have looked at the timing before I posted. I figured it out basically like you described only as little different. At some point after several revolutions, the "T" mark lined up with the mark on the stator cover, the drive pin for the spark advance was at 12:00, the "0" on the cam shaft at 6:00 and the master link for the cam chain was sitting at 12:00 for easy removal. Can't believe it was that easy.
Anyway, cylinders looked pretty good, only some very light scratches, valves looked good. The rings were OK but the pistons definitely had brown blow by on the sides. Similar to the browning in the picture you sent, only worse.
I took off the top ring on each piston and set then in their corresponding cylinders about an 1" down from the top. If sitting on the bike, the end gap in the ring on the right side is .020" and the left is .021". I think they have reached end of life. I will have my machinist check the piston and cylinders, but I think I have to go to the next size pistons and rings.
Having never been inside a 160, I think someone else already had as I noticed at the base of the cylinder where it meets the engine, there was some green rubber type stuff around the oil dowels. I am assuming that there should be o-rings there instead.
One last thing, if standing in front of the motor (exhaust side)with the pistons still in place, I noticed markings on the intake side of the pistons as"IN" or they would read "NI" if standing at the back of the engine (intake side). Is this correct?
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