So this is where I am at with the tear down.
I was thinking I just needed new rings and a carbon clean on the pistions and valves, maybe a valve job too. Then I pulled the lifters...
I found pitting on one of the lifters and the lobe of the cam
So I pulled the cam plate and Found this... Something had gouged out the the bore of the lifter.
After further inspection I saw that the lifter(crane cams lifter) flange on the pin for the roller at the bottom failed and damaged the wall inside the crankcase on the inner cylinder (right side).
Now the cams are (Andrews cams) not sure if that makes a difference that the lifter and cams are from different companies, or if that matters at all.
Now I am at the point where, can this be welded and rehoned or do I need to replace the right side of the crankcase altogether? Another idea that was offered by a salty sea dog was to clean out the burs and run as is because the tension was mainly front to back and not side to side.
I started at 100$ then kept going and finding other problems then it went to 1300$ with a big bore kit http://www.fuelmotousa.com/site/107-inch-big-bore.html that would replace all parts and give me more power, now I feel it will be $$$ to fix this crankcase issue...