Check compression, These bikes have a bad head design, they warp easy. If the compression is low, it's either going to be the valves or the head usually on these bikes. You will probably see a ring of oil around the head, this is normal. Now if you crank the engine over and see oil bubbling out... thats when you need to be worried.
I've had the head warp on me twice with this engine. I ended up running it on the rich side to keep it cool. Always let them warm up slowly. Mines also ported + different exhaust setup.
I've made a page on the KLT200 with information directly from the book, including cam installation. A lot of people think it's 180degrees out, but it is not.
I just wanna go fast. If your not first, your last!!
Reproducing the Tecate CDI. Contact me if you need one. I'm most accessible on FaceBook. You can find me on the 1984-1987 Kawasaki Tecate KXT250 Group.