I got some time to go through the bike, sort of taking stuff off (plastics) and cleaning in those hard to get places. The radiator was dented on this bike but not leaking in anyway. The guy I bought it from bought a new radiator to have on hand to replace when needed. I decided to go ahead and put the new radiator on and keep the old one for a spare. When I went to unscrew the bolts for the hose clamps at the inlet and outlet to the radiator, the screws were less than finger tight. I could unscrew them with my fingers. I think this could be part of the problem. Before I drained the coolant system I added distilled water and it took 130 cc's to fill-r-up. The book says it holds 470 cc's. I can see where 130 cc's could leak out with no hose clamps holding the hoses on.
The oil is a grey color. The water pump oil seal could be leaking. I plan ride the bike this weekend and watch the fluid level in the radiator. Then change the oil when I get home to see what it looks like.
I plan to change the parts in the water pump either way so that I know it is new.
The previous owner, great mechanic and racer, did a top end job to freshen up the bike before I bought it so I know the top end is good. Lets put it this way, may son was slinging some roost my way allllllll dayyyyyy longgggg and it was his first day ever on a 2 stroke!
Thanks for everyone input and I will keep you posted.
-Larry