Oh you would definitely raise some eyebrows with the smell of burning PB Blaster.. It smells like Diesel fuel as is when it comes out of the can, it smells even worse burning... LOL
If a soakdown and some good spirited riding doesn't get rid of the smoking then you know for sure you need a top end rebuild. Expect around $200-$300 once you buy gaskets, timing chain and tensioner/guide bands and have the cylinder bored and honed and buy a new piston and rings. Also do a valve job if and when you tear into it. Then you got something that will last another 20+ years if you treat it right with oil changes and maintenance.
Since it sat so long i would for sure at least get a right cover gasket and a centrifugal oil filter gasket, or just buy a complete bottom end gasket set so you have all the various gaskets for maintenance jobs, and get that right side cover off and pull the clutch cover off and clean the gunk buildup out of that centrifugal oil filter. It basically slings the oil around that on the 200's and it ends up collecting a lot of sludge in there. If it goes to long you end up starving the top end of oil flow and taking out the head and the cam. Good maintenance tip for you!
If you need the manual its on my website, link below in my signature.
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1984 Honda ATC200ES "Big Red"
1982 ATC200E "Hondie"
1988 TRX300FW "Project Quad" Still in progress....