So, this is my first fixer upper. Bike starts and runs great. Turned in the carb air screw although the bike is still spitting oil out of the exhaust.

The next problem is the clutch. What does everyone think about the clutch basket?

Clutch basket
Is it salvageable?

 

Looks like the engine needs refreshed. Exhaust valve seals leaking, the clutch basket is rough. This ride has some hrs on it.
Good luck on your first rebuild.