Well I got another minute to diagnose the kinetic.
Pulled the head and cylinder off to inspect for air leaks. Found none, but i did find that the PO used liquid gasket on the base gasket..
I think a rebuild definitely has to happen. I have quite a bit of connecting rod lateral play, coming from rebuilding the drz400 lateral movement in connecting rod is a big give away that rod bearings are on the way out. Not sure if its the same in moped land?
Here's some photos i snatched of the head and base gasket. When i split the cases to rebuild i'm going to do a bit of case matching as you can see some overlap inside the base gasket:
