Ok found the problem, for some reason I am burning my tranny oil. Let me tell you this thing smokes! Obviously this higher viscosity oil is what is making my engine run horribly. Now since i know why, maybe the community can help.

So my final question is: What seals keep this oil from getting burned?
Also isn't this what lubricates the crankshaft?
So anyone out there reading this I need to know what seals should be replaced to solve this problem, thanks to all who helped!

 

It's going to be the crank seal where it ( the crank ) comes out the case to mate to the tranny don't even try to change it without a manuel you will probably need to split the cases but maybe not not sure on zukes. Also in one of my posts days ago I explained that some of the premix oil in your gas settles in the bottom of the case ( when it loads up ) to lube the crank and rod and bearings also the premix it self lubes it. The tranny oil has nothing to do with the engine side. Search how a 2 stroke works and you could kind of understand what all the premix does and how the engine works in general. It's totally different from a 4 stroke.

 

Ya i know my problem now, both my crank seal are broken :P But i know everything i need to now and about to put the parts in soon, the tranny oil was getting into my jug and that is not good haha. Also it was getting into my magneto case, dam crank seals. Thanks for all the input, i should be good to ride soon.