Cam chain is auto adjustable..remove the hydralic adjuster on the front of the engine and check it as per the manual you can find on the site.
Start with the simple..but it doesn't sound simple. Sounds f*&^ed..how did this happen?
I got an brand new (NOS) engine in case it doesn't work out for you..PM me if interested.
Current toys..
1986 Honda 350X..trail bomb!
1985 Honda 250SX..my main mudder
1985 Honda 250ES..Back in Black Trike
Current non-trike toys:
1990 Honda TRX300FW
1995 Seadoo GTX
1998 Polaris Indy Lite 340(Nearly new looking)
1998 Polaris Touring 500
1998 Club Car (electric)