It will cost more then a few hundred bucks but it can be done on the cheap if you only want to fix the worst parts.
There are two sides to the dogs, the upshift and downshift sides. The downsift side will be what is worn if it drops off when you let off the throttle. There will be other wear on other gears too.
Removing the engine is very easy if you know the tricks. Don't use the manual procedure as you will fight it. It can even be done with one person with the right tricks and tools.
You need:
Basic 3/8th Socket Set (I like deep sockets myself). In that set you will mostly use: 10, 12, 14, 15, 17, and 19.
1/2 Inch socket to get the swingarm pivots out (29mm??)
#2 and #3 phillps screwdriver
Basic Pliers
Wrench Set (same sizes as note in the 3/8th sockets).
ATV type jack or Pair of Jackstands.
Floor Jack.
Allen Wrench Set (plus I like to use allen sockets)
Torx bit (don't remember the size right now)
Impact Screwdriver and #3 phillps bit Socket (the type you hit with a hammer so you need a hammer too).
That should about do it other then the press if your gear you need to replace is under the tension clips on the secondary shaft. Air tools will help speed the process up but not needed.
Likely it will need the shift forks, shift fork shafts, possible shift drum, 2 gears (the bad gear plus the gear it mates in to). All the cover gaskets, I like to replace the couple of seals (shift shaft and clutch pushrod). I don't have my list right now but the most expensive parts are the gears and shift drum.
We do offer the rebuild services and even have a few different methods for shipping. But you can probably do most of the work yourself. Of course the other options would be to replace the engine but you don't always have good luck with used ones (my luck has been better then 50/50). We also offer larger engine conversions for more power too.
Me and a friend can have an engine out from scratch in under an hour. Then apart withing another hour. It takes longer to go back together. I don't even know how many we do in a year. I do it everytime I build an engine too so it goes in and out.
If you want more info feel free to call or email me for some tips on engine removal and dissassembly. Of course I can send an email with one of our 1300 build sheet costs too. I do currently have one 85 engine on hand that needs a trans (already apart and waiting to see what any potential customer would want since we have overdrive options too).
Fargo (AKA RagingMain) can tell you how easy the engine removal is. To me the hardest part of the repair is cleaning up the old gaskets from the side covers.
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Sean Morley