1979 XS400 Not sure to make project or to part out

[RockSlyde]

Howdy, Super glad i found this forum, it's already made my life a ton easier.

So here's my issue, I just aquired the bike as a project, not sure if it's worth tearing it all down and rebuilding, or if the engine is toast, andi just need to part the bike out.

Here's what i know about the bike,
1. She's a bit rusty, but not too horrible that it can't be fixed
2. the rear wheel doesn't turn, which is the crux of the problem, i'm pretty confident that it's coming from the engine side of the house.
3. If i can get her going, I want to turn her into a cafe racer.

Here's my questions,
1. without tearing everything apart, is there an easy way to tell if the engine is shot?
2. what's the best way to go about this whole thing?
3. Thank you for the help!

 

[JARichmond]

Will it turn in neutral? If so, it's either a binding in the drive-side of the transmission, or in the engine. If not, try to turn it with the clutch in. If it turns, then it's the engine binding. If not, try to turn it with the spark plugs out. If it doesn't turn, dump a little penetrating oil in the cylinders and leave overnight. You'll likely have to replace your pistons and rings, but now you'll know where you stand.

 

[RockSlyde]

Awesome! thank you for the starting point!. So i've decided after scouring this forum, that No matter what she's going to run again, and will be a cafe racer. I really appreciate the help thank you.