Motorcycle Repair: 85 XL350R, construction mechanic, oil leaks

Question
I recently came into possession of this motorcycle and it had been sitting for at least 7 years. After much tinkering I was able to get it started but still have some problems. On the magneto side of the crankcase I have oil leaking out. In fact the way I was finally able to start it was the remove the magneto cover and drain the oil out that leaked in there and clean it all out with ether. This is probably a stupid question, but is there supposed to be any oil in there at all? I would think not but not entirely sure. There is no gasket (I think maybe there was once) and oil leaks from there like a sieve. Would I have to completely strip the bike down to the crankshaft to replace the seals? I am a construction mechanic not an auto mechanic so excuse me if I sound a little dim. Any insight would be appreciated Thanks, Joe

Answer
You need to replace the crank seal, this is a fairly big job, don't know if it can be done from the alternator side, the seal needs to come out and replaced.  You're right there should be no oil in there.  You should get a manual for the bike and determine if this job can be done without splitting the engine cases.

Good luck,  Jan