bleedingknuckles

im having gear change problems on my yamaha xj600n div.. clunking when i change up gear. i removed clutch cover to find white sluge inside the cover and large water droplets as well, what the hell is going on here. its air / oil cooled does not smell of fuel definately water

i have a yam xj600n when i change up gears it seems to clunk into gear each time , the clutch is ajusted ok is it a gearbox problem or clutch ?