Well figured i'd go through this on here as it might help others see how problem solving goes.
First up the surgery.
With bike on my front paddock stand i made a start.
Thing is an engine failing can have many causes. Rushing will make fixing much harder. A steady approach checking as you go is needed. As such i checked around the motor first. Head gasket good, base gasket good, ah... Bottom of the reed block is damp.
The damp was coming from the carb rubber. The rubber has lost its shape and the jubilee clip was weak. These together caused a carb leak that leaned her out causing this....
And...
You can see the swarf across the cases. The odd bit is the sheer size of the hole. I said the bike has done a couple of plugs and poor starting. The weak mix will have caused the poor starting and the dissintergrating piston will have fouled the plug.
The inside of the exhaust is silver ffs. There is even swarf in the carb. The mains sound a bit ify. The big end seems good. The little end though is toast. So for reliability sakes new crank seals and bearings will go in.
At the minute i have just the gear selector mech to remove then i can split the cases.