277 Rephase, stock bore, stock head, Mikuni VM 34MM Roundslide Carbs, Stock Headpipes, Pamcopete Ignition XS1 Camshaft. This is a Kick Only engine, we deleted the starter and all the related shafts and gears.
Still needs to be broken in, fully tuned, camchain re-tensioned, head re-torqued and such, but this is a great running engine. The ticking you head is the valves, I run them very loose while breaking in an engine, at .006-.007" so that I can guarantee everything is getting oiled properly before final tuning and install.
Notice that this thing is SUPER loose on my test stand (only 1 bolt holding it tight), but idles smoother than any stock XS650 engine you will find.