Air leak 84 250r

[hatc200x1]

This is a very unfortunate situation. So I picked up this 1984 250r this spring at a local auction for 300 dollars. It was stuck. So I tore the whole machine down, the rod bearing was completely melted and piled up. So I had my local shop that specializes in crank shafts, rebuild it with a hot rods connecting rod kit, I used Vesrah gaskets, cr 500 crank bearings, Fresh wiseco piston, fresh bore. The first time around I used Boss bearing crank seals, I ordered there crank seal and bearing kit and just used the seals and put the bearings on the shelf in a bag. After break in, this thing would have a high idle after getting off the throttle (only when the engine was good and warm and riding it for a while) And then if I held it wide open for a few seconds and let off, at about mid range rpm's it would surge and then high idle and then back down to normal idle. So I pulled the flywheel cover, pulled the flywheel and stator, and there was oil around the crank seal. So I ordered a new OEM crank seal, put that in, and then it would do the same thing, except this time I was trying to pull wheelies on the road and it couldn't seem to lift it up like it would normally. It felt pretty weak so I pulled into the drive way and she started death revving at maybe 1/3 throttle or more. Hit the kill switch, nothing, kept running, and turned off the gas, (I forgot about hitting the throttle WOT or putting the choke on) and it ran for about 8 to 10 seconds after shutting the gas off. Not at a lot of RPM's, But it was sure running without any spark. I then fired it up the next day and took some starting fluid while it was running and sprayed around the head gasket, and all intake boots and cylinder base gasket and it wouldn't kill it or rev up. I have about 3 hours of run time on the motor, The plug is black. I have no doubt that what seized it in 1994 was this crank seal air leak. Machine was all stock. I installed a DG pipe and silencer and jetted it the same as my 82 that has the same mods. I have a lot of money in this thing, I fully rebuilt the chassis on this thing to go to the sand dunes about a month ago, due to the air leak I had to take my 82r instead. Here are some pictures of when I first got it, The crank seal, and me having a blast on it....for a while.. (crank seal pic is turned but you can still see it) Look at all the oil on the inside of the stator(blackish), and also the oil at the "bottom" of the case where the seal fits into. When I replaced the seals there was no imperfections on the crank, OR the case.

So basically. What is wrong? Why will it not seal no matter what and why does it only do this when it is warmed up real good. What is the next step that I do.

Thanks guys, appreciate all your help in advance.