Motorcycle Repair: 74 Honda MT125, oil injection system, exhaust gasket

Question
I recently purchased a 74 Honda MT125, and upon startup, there is oil blowing out of the tail pipe near the head.  This seems to go away when the bike is warmed up.  The bike also is not revving above 4 or 5000 rpm.  Is it possible that these two problems are related?  Finally, this bike has an oil injection system.  How can I tell if this is working?  The last owner did not mess with it, and he ran premix.  The bike has about 4000 miles on it.  If there is any further information that I can provide, please ask at my email address.  Thanks for your help in resolving these problems.

Oscar Malkhoo
Long Beach, CA

Answer
Oscar,
 You may need to replace the exhaust gasket at the header and tighten sufficiently.  This can have an effect on the overall performance however it usually will not cause the low top RPM.  You are probably looking at a timing issue and/or bad points or a carburator problem.  You'll need to puchase a manual to walk you through carb. set up and point set up.  If the bike has an injection pump and it has been run dry all this time it may very well be destroyed.  The engine will always turn it but w/o the oil running through it to lubricate it, it will sieze and break.  My advice, don't try to use it at this point and just keep pre-mixing.

Hope this helps
Mike