Just how doomed am I?

[jereme_d]

So i finally got my 1980 gs550's carbs rebuilt and it started and ran like a dream. I did about a 30 mile ride and when I got done I noticed a little smoke. I looked over the engine and saw some oil leaking from the case. So my question is, just how bad is this leak? Am i going to have to tear my engine apart? And what seal/gasket is it that is leaking?

[dorkburger]

Just looks like the valvecover gasket to me. If so, no biggie, just replace it...

[Big T]

You did adjust the valves, right?

If not, apparently the bike is telling you it's time to do so

[sedelen]

First you got to determine where that oil is coming from. I can't tell from the picture, oil is everywhere. Clean all that oil off, run it and see where it's coming from, then once you find out where, then you can determine your next step, could be just a gasket, like maybe the breather gasket.
I'd check your oil level first though, you may have it too full, or with all that's leaked out, maybe too low.
I think it could be a easy fix.

[Steel Toed Tank]

It happens, no big deal.
Might as well adjust those valves when you install the new gasket.

[Nessism]

Yup, valve adjustment time. One of the first things that should be done on any old motorcycle purchase.