Something doesn't seem to look right here.

First of all, on a SOHC (which the picture you posted looks like, having a kicker) the factory manual says to use 20w-40 in most conditions and 10w-30 only in very cool conditions:

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I have used 15w-40 Rotella T (conventional, non-synthetic) for several years with no problems. I would not go any thinner than that in the summer. Many on this site have used 20w-50 motorcycle specific oil for years with no problems.

A SOHC XS400 engine takes 2000ccs (or just over 2.1 quarts) or 2.4 quarts if the filter has been changed....or so the engine itself and the factory manual would suggest.

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One last thing, which has been mentioned, but cannot be ignored:

Always check the oil on the center stand with the bike straight up, never on the side stand, leaned over!
 
I did the oil change and it called for 2.5q so after the first qrt the eye glass showed full. Whats up?
Did you drain the old oil out first? :wink2: Sorry, couldn't block out the mental picture.

Did you happen to look at the glass after you drained the old oil out? If you did and it clearly looked different than now, then start it for a few seconds and see if by letting the oil pump move a bit of oil around, the glass clears. If it doesn't then you couldn't have gotten all the old oil out because 1 quart simply won't do it.

However, if you didn't notice how it looked after draining, maybe the inside of the glass is simply coated with sludge or something, and that doesn't let you see the oil behind it.
 
Are you sure you got all the old oil out? The dohc has a drain plug as well as the filter cover plate. Not sue about yours. Try leaning the bike from side to side to make sure your not looking at on old oil line stained on the inside of the glass.
 
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