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As for the sludge, maybe the previous owner was one of those people who don't do oil changes regularly or even do them rarely with the cheapest oil. I have known people with cars like that so there are bike people like that too I would imagine.
Bingo!
He rarely if ever changed the oil. Probably just kept it topped off is all. The oil eventually cooks inside and turns to heavy sludge. I've seen this in old high mileage cars inside the valve cover area.
Many years ago when I worked on cars and trucks at a Chevy dealership I used to see a crap load of engines all sludged up. Usually it was small and midsized cars and pick ups used in commercial type work with the base engine, so the owners were probably cheapskates who didn't even think about or care about changing the oil. Usually these engines would tear up camshafts or valve guides.
Sludge is almost always an indicator of not changing the oil.
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