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88 nx650 smoke

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Hey guys, I came across a nx650 for a couple hundred bucks. Real nice looking bike for the year. Factory tires 1198 miles no tears in seat etc. It was locked up. Got that free and it ran. Oil was coming from exhaust. Took cylinder off and had it bored and new piston rings etc. Got it back together and same thing. So what yall think? valve seals?

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I hope that is what it is. Too nice of bike to let sit. I guess I should go ahead and replace guides when I replace seals.?

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