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I bought a 1981 yamaha XS1100 this past spring. Has 23,000 miles on it. In the last few years it has done a lot of sitting. It drove home the day I bought it. I immediately replaced the air filter, oil filter, gear and engine oil.
After putting a few hundred miles on it some problems have developed.

The bike started to get "stuck" in first gear, occasionally. I wouldn't be able to shift up in to neutral. Also, trying to accelerate from first would produce a very loud grinding noise and not accelerate. The bike would eventually pop into gear and I would be able to accelerate up and shift in to second. It wouldn't get stuck all the time but continued to happen more and more frequently. Eventually it would always get stuck so I stopped using first gear. It would happen after sitting over night, or in the middle of an intersection, warm or cold.

Next, the bike has a slight leak coming out of the left hand side cover of the shift mechanism. I can see it needs a new gasket there. I was frequently replenishing the engine oil. One day it started smoking out both tail pipes real bad. Getting it real revved up and going made the smoke mostly stop. That's when i parked it until I could get it in shape. Once I dove it I saw the new air filter I had put in was covered in oil, and some had accumulated in the filter case. The spark plugs show signs of oil foul. The second spark plug was apparently stripped out by a previous owner (I'm the third) and was drilled out with a wider plug put in it. This plug looked the worst of the four.

Any ideas of where to start with these issues?
Thanks
 

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I would check to make sure the oil hasn't been overfilled.

It sounds like there is something broken in the transmission. You would have to crack the case to find out what it is.
 
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