Hi All
I was hoping to try and start the engine without to much of a strip down but I have engine oil and sludge under the cover. Normal or a seal gone ?
I am wondering if it had a gasket leak and was topped up with any old oil over the years. You could clean it all with Gunk then start it up and watch for a leak. Regards.
The dynamo drive compartment is packed with grease on assembly, it is not lubricated by engine oil. The large dynamo sprocket is attached to the camshaft. You will probably get some oil in the compartment by leakage through the camshaft bush. There is not an oil seal here.
What looks like sludge is the remains of the grease, mixed with a bit of oil from the bush. If you have excessive play in the bush you would need to investigate but if it feels OK I would replace the cover with new gasket and not worry about it.