The stator runs in oil, that is normal. Sounds like a problem I had, ran fine, then no spark after sitting for a few months. I tested my stator output that powers the cdi and the trigger coils. Both had ac power when kicked over so I figured correctly that the CDI had died. Very common with the age of these bikes.
I think I am correct in saying your bike still uses the CDI type of ignition. You will find it under the tank, above the engine between the frame gussets behind the steering head. If yours has wiring coming out of the module instead of built-in plugs you have the old style CDI.
Do you have access and know how to use an AC volt meter. Can be a digital type set for ac and 20 volts or so. Do you have a schematic? I can copy mine into a JPG and send it to you. Just PM me with your email address.
Happy to assist you in finding your problem.
Steve
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'84 XT600 is now bored to 2nd oversize and new OEM pistons and rings installed. No more smoking.
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