For the last several months I've been battling a major oil leak from the stator cover. It started out pretty minor, but got progressively worse, where it became major. Looks like it is leaking from the stator plug.

At first I tried to fix it myself, by replacing the gasket - no success. My mechanic tried 4 times, two more gaskets, no success. He refused to try further.

I've been fixing it myself for the last week. I took the whole thing apart, removed the cover from the bike completely, which requires removal of the kickstand, the seat, the battery box, etc. I cleaning it very thorough, applied permatex ultra black into the slot where the plug goes, installed the plug and set the cover under a 50lb weight to press the plug in. Waited 24 hours, applied permatex from the inside and outside around the plug and the wires, sealing every potential source for oil penetration. Then i cleaned everything again, cleaned the engine case, applied a bead of permatex all around and installed the cover. As per Permatex instructions I tightened the bolts by hands, waited an hour and tightened them to spec. Then I waited 24 hours to let permatex cure completely before filling with oil.

This whole process with the 24 hour waiting periods took me a better part of the week. I just assembled everything today, filled with oil, went for a ride, and the god darn thing is dripping oil again.

I have no more time, will, or resourced to go further. I can't keep riding it with the leak either - I do not like oil all over my driveway, and its also a safety issue as the air pushes the oil over the rear tire when riding. A darn shame, I put a bunch of $ and effort into it over the years, and with just 6k miles its no longer repair worthy.

This sounds crazy and frustraiting. I literally have had mine off of my 87 3 times in the last month dealing with starter gears and haven't even changed the gasket until today. The whole time I've had no leaks.

Are you referring to the rubber grommet attached to the stator wiring? If so, there is a chance that it is just cracked and no longer useable. you'd probably be fine just replacing the stator itself with a good one.

Sorry that you are having a hard time mate.

They all broke so filling a flushing and cleaning out the case a few times before I am willing to ride it again.

The drain hole in that cavity will dump oil directly on the area where you have a problem.

The starter has an o-ring to seal it to the case.  That o-ring is situated directly above the cavity drain hole.  If it is damaged it will leak oil into the cavity and drain hole.  Remove the starter and check the cavity and o-ring joints for leaks.

Dave found one like this not too long ago.

That drain hole in yellow seems interesting, I definitely need to check it.

It looks like the screen assembly normally installed inside the head cover.  Possibly someone forgot to install it and tried to backfit (literally).  Dave worked on it so best to inquire with him.  He might have more info.  If the vent is plugged, capped, or otherwise obstructed, it might cause all sorts of leaks in locations such as those described in this post.  Easy enough to check.

The wire to the starter is the hot wire.
It grounds through the engine case,the big wire to the rear on the right side of the engine is ground. Trouble ensues when it gets corroded.