Originally Posted by bpeckm
I was going to suggest that a swollen clutch might be dragging and asking you to turn some gearjuice, until I saw the photo......
Next-most-likely suspect is going to be rings/jugs.... not likely to be bearings, eh? A quick pull of the heads will tell you pretty quickly, without having to pull the sump. An '85 will have the Nikasil jugs, which are pretty tough and unless major pitting is an issue, likely be fine. Lots of folks pop in new rings without work to the jugs, but you will want to read up on the vagaries of the Nikasils for your own comfort/edification......
Presumably with these guys a bastard file will take care of any cylinder rust.