HI, I also have a 1989 yz125 and its neat to see someone with a bike mine on here now and then....
Best thing you can do is sell the bike and buy a newer one around the 2500 price range, cause that is how much you will spend if you take on a big project to restore that bike like i did mine, and you still have an old bike..it cost as much to maintain an old bike as it does to pay off a new bike.
If you do need parts for it, go to
www.bikebandit.com,, but you may have to enter your bike as a 1990 to find more parts for it.
but the 89 is a cool bike for trails as its low to the ground and has a nice wide seat.
i'll help you all i can on it if you have any other problems, watch out for stators going bad, and if you do ever need one, buy the stators already on the plate with wire harness..if your power valve is leaky, all the new gaskets in the world dont last long cause the problem is some rubber coated washers in the powervalve are deteriorating,,
you can a cool bike though, its pretty modernized...
one thing i did was go to 11/52 gearing in the woods, made slow hill climbs much much easier.......
good luck...