This needs replaced correct?

 

Seems a bit odd it isn't leaking oil through the hole. My guess would be it has dropped a valve which has come back up and knocked a hole in the head but the only way to tell what has happened is to take a look. Heads, pistons and cylinders for those engines are cheap anyway.

 

okay i plan on taking it off tonight, so I'll check over everything. It was running okay. i noticed there were 2 different tie rods and when i stood up the quad i just so happened to see it.

 

If it runs OK and doesn't leak oil from the hole it could just be a casting fault which, by pure luck, hasn't opened into anything that matters. "If it ain't broke, don't fix it"

 

touche', fair enough. tho sometimes when starting it up, you fan feel and hear it make a "clank" like metal banging metal sound. So i was assuming that first reply of your might've hit the nail on the head.