Motorcycle Repair: Shadow ACE - Gas in Oil, rubber diaphragm, ace gas


Question
This whole problem started a little over a week ago.  I got this bike from a deceased relative but it sat in a garage for about 3 years.  I finally got it started after playing with it for awhile.  I put an STP fuel cleaner into my tank, that's when the problem seemed to start. I rod the bike around the block without a problem.

The next day I went into the garage and could smell gasoline really strong.  I attempted to start the bike and heard a loud clunk, the bike started knocking and sputtered out.  Then nothing.  It wouldn't even turn.  

I replaced the starter and now it starts, but there is a loud knocking noise coming from the engine.  I checked the oil and it was flooded with gasoline.  I am going to change it tomorrow and hope that this clears up the knocking.

My question:  Is there a big problem here?  How did gasoling get into my oil?  What are my next steps beyond the oil change?

I appreciate your help.

Answer
James,

the carburetors were likely very gummed up from
being in storage so long. This causes the
float needle valves which control the gas flow
to stick and leak fuel into the engine.

As you probably realize gas is not a good
lubricant for the engine. Hopefully nothing
is damaged and changing the oil and filter
will help.

-to prevent this from happening I would suggest
a thorough carb cleaning and also
some carb kits installed which have new
float needles and valves.
The carbs have many small air passages and jets
that will need to be checked physically for
obstructions.
The carbs also have some rubber parts so be aware
if you decide to soak them in carb cleaner solution.
It may eat up the rubber parts.
-also check the gas tank petcock valve,
it has a rubber diaphragm that might be bad.

-if you get the oil changed, see if it runs
okay then. If it is still knocking check
the compression and maybe have a mechanic
listen to it to determine the cause.