Motorcycle Repair: Honda 1977 XL350, exhaust gasket, compression release

Question
I am rebuilding a 1977 xl350. I checked the timing on the motor it seems to be correct. I rebuilt it and now every time I kick the motor over I hear this loud Bloop sound. I tried adjusting the exhaust valve adjusters and the intake adjuster.  The only way I can make the noise stop if I open up the exhaust adjuster all the way. But then I do not have any compression. I was wondering if you had any clue what might be the cause of this blooping sound.

Answer
Justin,

I hope you didn't turn those valve adjusters
down too far? They could cause the valve
to hit the piston when you turn it over.

Loosen the adjusters off and just set them
all with about .003" clearance.
Make sure the "T" mark is aligned on the flywheel rotor.

Also if it has points they should be gapped about .014"
and just break open with the rotor "F" mark aligned.
Is the mechanical ignition advance okay?

Now check the compression with the throttle open,
is it still okay? 150 psi?

Is the exhaust gasket leaking or is the pipe
loose?

Does it have a compression release? Is it ok?

Has the bike been running yet?

If the engine was assembled carefully,
it shouldn't be anything serious hopefully.

Let me know if you have more info as I can
not hear the sound from here.

Sometimes a mechanics stethascope can be used
to pinpoint the area the sound is coming from.
Or even a long screwdriver held to one's
ear might help to narrow down the location
of the "bloop"