You should perform a leak down test... you might have a crank seal leaking. Also check your service manual regarding the timing procedure: I believe you have to use a dial indicator to set the timing X below physical TCD as with most 2T's
Have you ever done a leak down on a two-stroke?
You have to remove carbs and exhaust system, block up the holes and pressurise case to around 7psi.
The big holes in cylinders mean you can't/don't do a leak-down same as on a four stroke motor
You can do a compression test but it usually won't tell you much
CS5 has a starter-dynamo and not an alternator, there are multiple things that can go wrong, very few people know what they are doing with them
Setting timing accurately is real important if you don't want to hole pistons.
You need a special dial indicator with plug adapter, the normal DTI will contact frame tubes, the correct one is only about 30mm diameter (I'll take pictures of them side by side if you want)
If the mileage is correct, the crank seals may be dry rotted
You would be far better off making it as stock as possible then sell it to a collector, the 250 or 350 will be a much better bike if you want to build a 'cafe'
