ltf 250 quadrunner , i pull the cover to get to bottom valve and gas/oil pours out? any ideas?

 

May need a overhaul. My friend recently purchased a Honda 250 that smoked pretty bad. The guy told him he just put a new piston and rings in it and it didn't fix the smoke so he gave up on it. We pulled it apart and found the problem. Instead of boring the cylinder out, the owner just put an over sized piston and rings in it which did not work. We bored it, and put new piston and rings in it and now it runs great.

BTW, when we pulled the valve cover off of it, it has lots of oil on top too.

 

i have no smoke its gotta have something to do with the valves or seats no? opened cap to adjust valves gas dumped out looked oily.