I currently do not have the gas tank on the bike as it was filled with rust. i have cleaned and sealed it. i am using a large in line fuel filter and hose and just filling it up for test starts. I think i could let it run out of fuel and if it was loading up it would start running better as the gas ran out, correct? I am currently mixing oil and gas as i don't know if auto oiler is working. I have disconnected the oil line going into cylinder and i do not see any oil coming out while its running and disconnected. Do you think i should let it run out of gas in the carb bowl to see if it runs differently?

The poor running performance and the tons oh white smoke coming out the exhaust port and the end of muffler is why i suspect its burning transmission oil.  Ehile running it also drips what appears to be oil off pipe.  This coule be due to loading up and or the transimission oil i guess.  Here is a picture.  Oil at the exhaust does not alarm me a lot.  just seems like its a lot of oil and lots of white smoke

Looks like the mouth of the pipe is not mounted correctly, like it's off at an angle. Do you have the rope-like gasket wrapped in there? Is the rest of the pipe mounted correctly? Not bent or anything.

Finding a pipe bend with oil in it and the excessive smoke is so common on a bike that has been sitting for years.  Certainly it could be something else but often just running the darn thing works.

Going from your first post to here at the end--i'll read it all tonight--i'd say the pipe is 'very' blocked up if it just won't come right. Or the Oring is stuffed or missing in the carb to bowl seal!!. Never done a leak down test as never needed too. If crank seals are leaking that bad it'll just be so lean it'll be hard to keep running. Is transmission oil disappearing at an alarming rate. Block off the breather to see if it improves. Is the oil tank removed as can still gravity feed without cable connected.

I agree that the pipe is not fitting into the flange perfectly. It is mounted properly at the back and its appears to be pristine. I have tried it without the pipe attached It runs but really at no better rate. I am not aware of rope like gasket. i did put new metal gasket in the exhaust port. Springs are a little weak so it does not pull it in tight. I did stand the pipe up and poured a little oil out of pipe. it smokes plenty out the tail end of pipe.
i dont have the original filter. I have a make shift filter over the rubber breather connecting duct and i have tried to cover the back of carb as trying to choke it. acts like it would die and its hard to try stuff as it will not idle.
I have cleaned carb twice and definitely found a couple things i missed the first time around. As well, i did not attach the throttle slide back correctly the first go around. The throttle is not rewinding as it should on the handle bar. have to manually turn it back. It has always started instantly when i sprayed gas in back of carb and or put gas in the cylinder plug hole.

Oil in transmission is getting lower. The oil tank is still attached and i have tried it with it attached to cylinder and i have had it disconnected from the cylinder. I have never seen any oil come out of the banjo fitting and it really ran no better either way. I have been premixing the oil and based upon smoke, its getting plenty of oil.

I did try an ebay china carb and it never started with it. i will admit that i did not know how to properly reattach the cable to throttle slide at that point and i think the slide was up way too high

video would sort it if you can do a good one, good audio.

i will try to get one and figure out how to upload. I surely thank everyone for their help. i may have started asking stuff too early as i got several things on it im working on at the same time. Gas tank, clutch, and then obvioulsy trying to get it running. Of course without it running right, all the other stuff is not important, lol