If you look in that small hole you can see the reminants of the cylinder stud (the bolt that holds the exhaust header to the engine casing). What this means is that the bolt was broken off and I now need either another cylinder block, or drill out the stud and re-thread the hole. MAJOR FRUSTRATION!! Apart from that and some stubborn screws, I haven't found any other critical problems with the bike which is always good.
Tomorrow (providing the weather is a little better) I hope to get the fuel drained out of the gas tank and carbs, get the air filters removed, and hopefully take a crack at getting all the electrical mapped out and possibly disconnected. But for now, here are some more pictures of the bike.