transmission issue
With your description, I would suspect a leaking crank seal on the clutch side. It would explain the extra smoke and the change in jetting in the lower rpm range. Next step I would find a way to measure if some transmission oil was lost.
Yessir, I'd go with what no hand said....good thing is, no splitting the cases to change the seals!!
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hey guys ok so i was brappin it today and notices the loss of power when in lower end of the gear (all gears) and it smelled like plastic burning definitely not good . it was dumping out gray/ dark grey smoke. think its somthing with the trans oil getting into the motor possibly. i just i just did a bunch of motor work like top end clutch and carb rebuild. note it had power in the top end still but it was lacking a bit. also i check the anti freeze and it still was filled. any info at all will help thanks ~kyle