I also noticed when I take the cap off the adjustment for the powervalve it turns very freely... should there be some resistance or is that right? And I punch the throttle really good and I dont see much movement in the sight glass if any at all. Do I have to remove the cylinder to further check the power valve? I'm getting so frustrated with this, almost ready to trade it for LTR450.
Remove the cover with the sight glass on the lower right hand side of the cylinder. Use a pair of needle nose plyers and try to move the rod up and down. If it moves up and down, remove the exhaust pipe and look to see if the valve is fully open or fully closed.
If it is stuck fully open, there will be a huge loss in power in the mid to high RPM range. If it is stuck closed there will be some power loss in the 4000 to 5500 RPM range.
If the valve malfunctions it is best for it to be stuck closed. If the valve is stuck open, it will often cause the piston to overheat if the engine is run hard in the RPM range where the valve should be closed.