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Put bike in 4th gear and take plugs out. Rotate rear tire while snugging the two bolts (#1 and #2) down. You should see oil come out of the center of the shaft while you are spinning the wheel.
There is a little oil hole right above the crankshaft and as you turn the wheel you will see the oil come out and drip. Just watch the crankshafft turn and you will be able to see oil.