Here is an update on my motorcycle. Since I have bought my xs400 I have replaced the chain, air filters, changed oil, replaced the carburetors, carburetor boots, in-line fuel filter, mufflers with new gaskets, spark plugs, spark plug wires and boots, ignition coils, a battery, new fuse box, and obtained some side covers.
I know this doesn't seem like a whole lot compared to a total "rebuild," but I am a green horn when it comes to motorcycles and all these small projects has helped me learn quite a bit from what I didn't know. I can't forget to mention all of the time I have spent soaking up information from the forum. This forum is awesome! My bike is pretty much stock minus the new mufflers. I'm not sure what direction I want to take it. For now the plan is to enjoy it for what it is. Yesterday I took it around the neighborhood for a few hot laps and discovered that my front fork seals are leaking. I still need to sync my carburetors and tune them accordingly. So the next plan of attack is change the fork seals and tune the carburetors. Below is some updated pictures.