Okay, Making some decent headway now... If I push hard to make time, I could definitely see this thing rolling on it's own wheels within 2-3 weeks.
Most of the past week I was very sleep deprived... work as a self-employed contractor by day, and then bike mechanic after the sun sets.
Progress pics:
Rebuilt front calipers RTA
RM Stator installed(The starter gear and dowel shaft were pulled out and placed into the case before reassembly, and I used Hylomar on most gasket surfaces... in case anyone was wondering

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Hand-cut clutch cover and oil/transmission pan gaskets. I use variously-sized spent brass/steel bullet casings for hole punches(from .17 to .40 calibers so far... wish I could get my hands on some .45 & .50 cal brass to complete the collection... it's always way more fun when I'm the one "unloading" them too.:-\\\

ray
Ray fixed me up with shims from the shim club, and I was able to get most valves to .063mm after the second attempt(#4 exhaust was so tight when I began, that I decided to give it extra clearance,.089mm, in case there is carbon build-up on the valve/seat that will reduce the clearance when it dissipates from the now fully closing valve... #1 intake was similar, but not quite as bad, so I gave it .076mm)
The clutch hub nut was loose, all the discs were glazed, and the damper springs were rattling... The driven discs actually had more of a rust patina than glazing; they cleaned up great with a rollock disc on my die-grinder. The plates were given a light wet oil sanding on a flat table top and still specked at 2.9mm afterwards.
The loose damper springs were fixed the flyingbanana way... no need for me to really beef-up the clutch just yet. Maybe next year, or when/if I get around to a top-end rebuild/rebore.
While I had the clutch out, I went ahead and pulled the oil pump; checked it, tightened the end float a smidgen, and ported/radiused the inlet/outlet transitions from the round holes to the final shape of the rotor-facing cavities.(the o-ring and inner flat surfaces remain the same)
To facilitate the 50lb torque-down of the hub nut, I welded a stopper bar(piece of scrap steel tube) to the old drive sprocket and put the motor in 5th gear. Hooray for custom made free tools!
Blah blah blah... all the usual seal replacements, tensioner rebuilding, head nuts re-torquing, mechanical advancer cleaning & Dyna S ignition, some shots of VHT header & engine paints, and SS fasteners.
Pretty much ready for reinstallation. Hard to get clear pictures late at night, or early morning. (The important stuff is what's inside anyway, right?):
Also finished putting the forks back together; I used a flat honing stone over the inner tubes to dress-down the pits and then rubbed wax into them... felt smooth enough for the seals when I was done. I cut 50mm off the springs and made new pvc spacers, giving the springs about 10mm more pre-loading as well. To protect the fork tubes from pitting again or rusting from the old pits, I coated the tubes with some silicone grease and fit them with gaiters. I also whipped up a couple tube-wraps to cover the tubes between the headlight mount rings.
And... The frame is now at the sand-blaster's, AND, the shock tabs are finally welded to the swingarm!