My second issue is that at the same time I noticed the milky tranny oil, the bike developed a strange noise when running. It sounds like a rotational sound, and not a reciprocating sound. Sounded like it was from something spinning, and not from the top end. It sounded like something rubbing on the inside of the clutch cover. When I pulled the clutch cover, there was no evidence of anything touching the inside of the cover. I also pulled the flywheel cover to check it since the bike does have a flywheel weight that I was afraid may have come loose. The inside of the flywheel cover was untouched, and the flywheel weight was tight. Also of note is that when I turned the engine over with the kicker, I could still hear the grinding/rubbing sound. So, I drained the coolant and transmission oil. I tried turning the engine over with the kicker again, and there was no more bad sound after the fluids were drained. So today I removed the right side cover and turned the motor over again with the kicker (plug was out) and it is still dead quiet. Only normal sounds. I don't get it.
There is some slight up and down play in the clutch basket if I grasp it and try to move it. Is that normal? I don't ever recall a slightly wobbly basket on any bike I've owned, so I think there may possibly be something loose. Maybe the nut that holds the basket to the shaft?
Any ideas for me guys?