I have similar problem with a 1980 GS850. Starts and runs ok but will not accelerate past 3k rpm under load. I have riden around the block in all gears but it dies when I turn up the throttle. I don't have the airbox on because the tubes are so stiff so I have suspected that it might run lean. I have cleaned the carbs twice quite thoroughly with small wires in the jets etc. Timing is not a problem, all 4 cylinders run well although #2 is only 90 lbs. compression with the others 100 or better.
#2 cylinder does spit back occasionally with flame. Because the front of the engine is oily I was told that these engines are notorious for blowing the head gasket .. but I found that hard to believe ... now I am not sure...
The previous owner GAVE me this bike he was so frustrated so I happy although I am beginning to understand his frustration !!
Any truth to this tale about BLOWN HEAD GASKET with this year engine model ? Later years don't have this problem ....
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