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I second the key theory. that looks like something has been striking that cover. if you look at the first fin you can see the gouge and the the marks are longer right on the side corner. Aluminum is very soft. if it was corrosion, you wouldn't see some of the shiny fresh marks
Fellows, you cracked the case.. the key chain was to blame for this.
It never occurred to me that my key chain would hit the valve cover and cause this.
When i looked at the damaged valve cover the key was removed from the ignition... after reading about the key being the possible culprit for this i put the key in and the markings on the valve cover match the area where the key chain would flap in the wind and strike the cover.
Well thanks for letting us know the culprit. I hate those posts where someone asks a question, everyone puzzles over it for awhile, then the OP never comes back on the thread to let us know what the problem was.
FYI - the ignition switch will last a lot longer if you do away with the whole key-chain thing in the switch. All that weight flapping in the wind plays hell on the lock tumblers.
I have the one bike key on a small ring, my full key ring stays in my pocket.
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