I'm not sure that anyone mentioned the other symptom of a bad clutch-side crank seal...you're exhaust will be spewing unpleasant smelling white smoke as the engine attempts to burn the transmission fluid. Sometimes the smoke is the first indication that your seal is bad.
On the wet reeds and intake, it sounds to me like too much fuel is being supplied. However, the only time I've run into a problem like this was on an LT250R Quadracer...the engine was an '85 with a hybrid case-reed/piston-port intake. When the previous owner rebuilt the top-end, they didn't chamfer the port edges very well and the piston skirt snagged the intake port. This broke off a section of the piston skirt on the intake side, which was eject out the exhaust and the engine continued to run as if nothing had happened. Problem was, as the piston moved toward bottom dead center, instead of sealing off the intake and creating positive crankcase pressure to force air/fuel up through the transfer ports for combustion, a portion of the air/fuel was getting forced back out through the intake tract soaking everything in it's path with fuel. The air filter was actually fuel soaked and a small puddle of fuel was visible in the bottom of the airbox. The fix was a better chamfer on the bottom of the intake port, cylinder honing, and a new piston kit. While I understand that this is a Kawasaki site, and the KX has reed-valve induction, I thought I'd share the info anyway, for the simple fact that more information is never a bad thing.
