Well, I had to proceed with me splitting the cases because I had gone so far down that road and the dealer would not budge from this course of action no matter what. If he did the work, he said I would have to pay labor because the most he could get out of Kaw is parts, no labor.
Before I split the cases, I put a staight edge on top of the machined cylinder surface, across the two case halves. Both the front and rear edges left a .0025" gap. So, I split and stripped the cases and expressed them off to Kaw in CA. Hopefully I will know something today. I also put a list together for all the parts needed to rebuild the engine (bearings, seals gaskets, piston, cylinder, head,cases...).
I may need help pressing the crank into the cases/bearings. I can machine spacers to put between the crank flywheels, but I am a little concerned about messing up a new crank putting it in. It took a fair amout of force pushing the old crank out of the cases and I imagine, it will take the same putting in the new. Since the seals will have to be installed in the cases before the crank, heating the cases to make the interference less is not really an option...
Any ideas here as to the best way to press a new crank w/bearings into the cases so that I do not disturm the crank halve's alignment? Also I would imagine the crankshaft should have some side-side movement/clearance, right? I do not see that parameter in the service manual and I was wondering how to insure the main bearings are not bound slightly from the case reassembly.
Thanks again for the help!