Recommended reeds?
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Smoke shouldn't be coming from the Powervalve area.
You need to sort these little niggles out in order for us to really identify the problem.
It may be a combination of a lot of things that are causing these issues.
Sort the powervalve out and we can move on from there.
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@declan Not really. Two strokes are not made anymore for this reason, they're oily.
To me it looks like the oring needs replacing.
The exhaust should be dripping from the expansion chamber usually.
I'm sure someone will disagree, but when it comes to oil, I'd rather run a little more than a little less.
That post the other day may interest you as it is possible that the little bush can wear out causing excessive play in the powevalve housing.
It could be this as well.