This shows a typical oil scraper.  Note how the top half of the ring is black, while the bottom half is polished.

Looks to me like that motor had a steady diet of dirt.  Those striations above the top ring look like there was all sorts of abrasive material in between the piston and cylinder.

I agree with Dave, the second ring looks like it has a lot of corrosion.  If it were simply "gunk", you would see it on the oil rails (oil control ring) and the top ring (compression ring).  The compression ring is stainless steel with a plasma coating.  The oil rails are also stainless steel and probably have a plasma coating.  The second ring (oil scraper ring) is cast iron.  It corrodes easily.  It was probably sitting in one location for a very long time.  If there is pitting in the cylinder it will be easy to see when you kiss it with the hone.

Note how the entire surface of the oil scraper ring (2nd) is polished, top to bottom.  When the oil scraper is in good condition, only the bottom half will be polished.  That's because the scraper has a trapezoidal cross section.  The trapezoid forms a sharp edge at the bottom of the ring.  That sharp edge allows the scraper to wipe the oil off the cylinder as the piston moves down.  It is easy to install that ring upside down.  When you make that mistake, it becomes an "oil pumper" instead of an "oil scraper".

Mine won’t do that.

Those 2 holes in the slide need to be there....without them the slide will not ever rise, and you will never get above an idle speed.

The size of the holes is also somewhat critical, as they determine how quickly the slide will respond to changes in the engine vacuum when you twist the throttle and open the butterfly.  Smaller holes will give more time for slide to rise - larger holes will make it happen faster.

Changing the size of the holes is risky - if the holes are too large the slide could rise too quickly and you will lose the "Constant Velocity" benefits.  The slide could lift quickly and allow the vacuum to drop - which would then allow the slide to drop.....it could get into some weird oscillation.

When I clean carbs, I never remove any of the jets in the carb inlet or the top where the diaphragm is located.  I only remove the pilot and main jet - the air correction jets never seem to get corroded or plugged up.  I never have to worry about getting them in the right place if I never take them out!

Thanks Dave.

Would flipping the plate over to reduce vacuum be something to try?

I have a 145 main, 52.5 pilot, 230 pilot air 1 up top, and the other pilot air is oversized. I'm going to get my hands on a correct size pilot air one way or another so I know its all correct.

I'll take a look at the TEV diaphragm next time I can. Not till Sunday at best.

The holes in the bottom of the slide are what allow the vacuum in the venturi to get on top of the slide/diaphragm and raise the slide.  When the vacuum is low the slide drops....when the vacuum is high the slide rises.

If the float level is correct and the float bowl is not overflowing - then the chances of filling your crankcase and airbox with fuel is not going to be an issue.  The other way the crankcase/airbox get filled with fuel is when the diaphragm in the stock vacuum operated petcock fails and allows fuel to flow down the vacuum line.  If you have a smell in your oil currently, it is likely from the overly rich fuel/air mix.

I suspect that you just don't have the jets in the proper place.  I would start with a #150 main jet and a #50 or #52.5 pilot jet.  Make sure the other jets are in their proper place.

What is the condition of the diaphragm in the TEV (Throttle Enrichment Valve).  Those get stiff and won't work as they age.

I likely have a good stock carb....I will look and see what I have.

Little update:

Dave, that's what I was figuring as well. I just can't figure out the cause.

I was able to poke at it a bit this morning.

I made sure the intake connections were tight and flowed propane around them to see if it was leaking. It doesn't appear there are any leaks.

I checked the float height again. I'm using the clear tubing method I saw suggested here since pulling the carb all the way out is more of a headache than I wanted to deal with today. The bowl level was a little low so I raised the float a bit to get it back up to where it should be.

I changed the oil after I did the petcock. I gave it a sniff and it does smell slightly of gas currently. Would that indicate fuel leaking through the carb into the crankcase? If so, how do I go about finding/fixing the leak?

Dave, seeing what I've already done, or starting from scratch, do you have any suggestions for tracking down the over fueling?

I am definitely going to see if my local bike junkyard has a carb I can buy so at least I have a set of what should be stock jets etc.

Also just so I'm sure, the plate that holds the needle in the slide has 2 holes (other than the screw holes) that line up with holes in the slide when flipped one way, but when flipped the other they cover the slide holes slightly. I've been under the assumption that they should line up. Is this correct? Or should I flip that plate so the holes are obscured?

Again thanks for the input.

I would not suspect the rings at this point.......it appears you have a carb issue and are just dumping too much fuel into the fuel/air mix.

Welcome Bohica88

Hay drop into the Cafe sometimes too !

You can show us a picture of what your starting with :

1.  Click on "Choose file" below ,
2.  Pick the picture you want from your computer (about 2mp) ,
3.  Post !

So simple even I can do it !  

After a bit of scuffing the clutch cover around - I found a bit of a warp right where the leak is.  I continued sanding until it was gone and all the die was removed.

I then reinstalled it with the Suzuki gasket with the steel interior, and I used a very thin wipe of Suzukibond on the sealing surface where the oil passage is.

I had to go out of town and it has been sitting for a couple of days - I will likely get a chance to fire it up and see if the leak has been solved.