Glenn,
First of all, thank you so much for the insite and info. You are really helping me make the right decisions and check all the right things to get this bike right, which is great, because its a great bike.
A little history about the bike:
It was originally owned by Russell Bobbit and from what I was told, this bike was his practice bike. I am not sure how many hours he put on it or when he sold it to the second owner.
The second owner was a friend of a friend who was in his early 50's at the time of purchase I believe, he raced the bike in Hare Scrambles and was from I have been told, a very particular person when it came to maintenance and upkeep on the bike. He sold the bike to my good friend Adam when he bought a new KTM200.
Once my buddy Adam got a hold of the bike we took it out and rode it a couple times at local parks and just play rode on it. One day when I was not around, he took the bike out and rode it, he later told me it was making whirring sound but he did not stop to look into it. Obviously it was the left side crank bearing begining to fail. The cage eventually let go and the bearing locked up. Looking into the engine now, it appears the only damage was that it ate into the area where the crank seal seats, but only on about 1/2 of the diameter and in a cresent shape and not very deep. I may have a picture of it I can post.
So in short, I am not sure of the total number of hours on the bottom end, or if it had ever had any previous failures or rebuilds.
On to what I saw during the tear down:
Starting Up Top:
The cylinder shows signs of flaking, mostly around the exhaust port but also some on the intake side, the piston shows this also with the very minute but consistent scratching along the skirt. The top of the piston had an even coating of carbon build up, and the bottom side of the piston head had a very small brown spot in the center. The power valve had moderate carbon build up and the bearings feel a little rough.
The Bottom End:
When splitting the case the left side bearing which failed, stayed locked onto the crank and of course pulled out of the case as it was being split. I eventually removed it from the crank using a puller tool. The opposite side bearing slid very easily off the crank as I gave the crank end a couple very light whacks with a piece of wood and a dead blow hammer. In other words it came off a lot easier than I expect it should. That bearing was fairly easy to remove from the case using a very large socket and a dead blow hammer once the locator dowels where removed from the case half and the case laid flat on the work bench.
Looking down onto the big end rod bearing, I can not see any bluing or signs of scoring or wear marks, it looks to be in good condition.
The journals on the crank I have no idea about, as I have very little experience with cranks and what normal wear looks like. It does not have any deviations in the surface, as far as being able to feel anything with your finger nail. The color on them is not uniform. I will get a picture of it this evening and post it on here.