Like I said I only used loctite because the manual called for it. Gonna check my motor mounts tonight but after they came loose last time and caused my bike to misfire and blow my reeds apart I loctited all the nuts on the bolts so if it's not loosr mounts is there a chance it could be my crank bearing journals? The flywheel key shearing is a symptom of something else and if it's not loose motor mounts is it possible for the crank bearings having play to cause the flywheel to shear or am I off base with that assumption?

The tapers fitting each other perfectly and the torque on the nut is what makes the flywheel stay put.  The woodrif key is there only for alignment when installing the flywheel.  The key IS NOT SUPPOSE TO HOLD ANY LOAD AND IS NOT DESIGNED TO KEEP THE FLYWHEEL FROM ROTATING ON THE CRANKSHAFT. 

Loose bearings or bearing pockets will not cause a flywheel key to shear.  Again....your tapers are bad or the torque is not up to spec.  It may be a simple as your torque wrench is junk and your not applying enough torque when tightening the nut.  Do not put the engine in gear and use the rear brake to hold the crank steady.  Use a spanner wrench to hold the flywheel while torquing the nut.