Originally Posted by petesonhisway
From what you say, it seems almost certain that your clutch slave (the cylinder mounted just in front of the front sprocket) has cracked. This is a really common problem because the slave cylinder is not strong enough. If you have a leak of mineral oil around the cylinder then that's it. It happens on every 950/990 in eventually.
There are stronger after market cylinders on the market, so you just replace the leaking cylinder with one of these and the problem is solved. If you search this forum you will find lots of info about the clutch slave.
Note: this is not your drug store type 'mineral' oil.
It is a mineral oil common to Mercedes-Benz', Porches and the like - buy the proper, recommended oil.
Chain and sprocket - change all as a 'set'. Don't go cheap here. KTM offers the 'kit' for about $200.US
How much did you buy this bike for?
Sounds like you may have gotten a expensive 'bargain'. . .