Engine overhaul?

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Goldie I would soak the cylinders with ATF for a couple of days rotating the engine a few times during the soak ( in gear with the back wheel if you don't hav the timing covers off). I prefer that method rather than changing the viscosity of the engine oil by adding ATF to it as you already appear to be having ring sealing issues atm and that just gets worse with lower viscosity.
 
UPDATE!!

Worked on her all weekend. Even though i still cant get her to run steady " due to terrible carbs that will be rebuilt next Sunday" the compression is already showing signs of improvement! I think I may be ok.

A quick thank you to Riff Raff for helping me out with plans for fitting a Valkyrie seat to a GL frame. It was pretty easy to do. Check out the new pic below, let me know what you think!



 
Carbs were rebuilt and installed, gas tank cleaned, fuel lines and filter replaced. she fired up and sounds fantastic! no more smoke no more spitting oil. Another oldwing is roadworthy once again!
 

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