It looks like bubbles are coming up from right where the spark plug goes into the cylinder head. I'm not sure how this would be possible, but we dropped a razor blade when we were scraping the gasket off and had to tip the bike upside down before we drained the oil to get the blade out. Any ideas? Maybe it's not torqued correctly?

 

bubbles comimg out from between the spark plug and the threaded hole for the plug????

 

That's what it seems like. The the oil just pools up in the reservoir where the plug is seated and slowly runs down the side of engine.

 

look closer at the valve cover gasket with a flash light. it might be pooling and then boiling from heat. If it is bubbling out of the plug hole it would be oil passing the rings AND a loose plug but you would have an extreme amount of smoke IF it ran to get that much oil there, Check your valve cover gasket. When i did my kit i had to change the gasket for a leak also but it was leaking on the other side..
Glue it in place on the cover and then set it down on the head.

 

It's definitely not the valve cover gasket. I let the bike cool completely down and then rinsed it off and than started it up and ran it for a little bit and I could first see bubbles near where the spark plug enters and then slowly oil started to pool in that reservoir and than ran down the engine. The faster I revved the bike the more oil that came out. I'm going to pull the fuel tank tomorrow and see if the spark plug isn't tight enough. I doubt it though. I made sure it was pretty tight. Maybe it's because there is so much compression in the head that it's pumping the oil through the threads where the spark plug is. This sucks.

 

Technically, it blows. Also, you didn't raise the compression to the point that you're blowing oil past the spark plug threads. Even if the plug is loose or cross-threaded, there wouldn't be enough oil leaking past the rings to be pooling up in the spark plug well and running down the side of the engine. It has to be coming from the valve cover.

 

in order for oil to be coming out of the spark plug threads,,,
1, you have a crack in the head and there is an oil passage in the area.
2, the oil is coming from the combustion chamber in which if there is oil coming that route, it would smoke like hell when running (I would think).
Since you just did the 351 kit can I ask a dumb question?
did you put the oil ring and seperators in "clocked" correctly?
I don't have a spare head lying around but i can't see there being an oil passage so close to the spark plug hole. the material in that area needs to be thick.

EDIT: did you do the cam timing mod????

 

That doesn't sound good.. Did you possibly cross-thread the spark plug and chew up the threads?! Unless it's not tightened down all the way, that's about the only other way air would come through. And even then I wouldn't think enough would come through to pool up oil.. Plus if there was that much oil in the combustion chamber, I doubt the bike would even run! And if it did you'd be burning and smokin like crazy.

And the fact that oil is even in your combustion chamber in the first place is not good. It's either coming from crankcase below and going up through your piston rings, or it's coming down from your head through the valve seals..

Are you sure you have all the piston rings on correctly and the gaps in the right spots?

Good luck..

 

Pull your radiator cap and see what color the antifreeze is.
you might have a bad head gasket.
The bike doesn't smoke at all when running????

 

You know what,,,, lets start with the simple things first. you say you had oil all over because you flipped the bike over. take out the plug and clean the pocket first, then try it again, you might just have spilled oil into the pocket where the plug goes and the heat is boiling it up.
take a quick look first before you tear it all down.
does it run well???