Starting my clean up on my '80 xs400 special sohc. Concerns.

Did the oil smell like gas? Float valve stuck open seems to be a common reason for of gas in the oil. Time for a thorough carb cleaning. There's a great step by step write up in this forum somewhere but I can't seem to find it.
 
The oil could have gas in it, or it could just be a light grade or just very burnt from never being changed. Give it a smell..

Carb cleaning is almost always a priority. I use an ultrasonic cleaner and I give the carbs a dip every season.

The first time you tear them down, Id go all the way to the throttle shafts where theres the shaft seals. These are a real pain to get to, but are a major factor when it comes to high and hanging idles and other erratic idles.

Be sure to keep EVERY part matched to its corresponding carb body. Ive taken photos of some steps, especially with the linkages to keep track of placement. Get the right tools for Japanese carbs and dont mash the brass.

After the first overhaul, you are good to go. When you put the bike away for the season, you just drain the gas and remove the carbs and bring them inside. I remove the bowls and spray fogging oil on everything before closing it up.
 
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