After discussing my problem on the VX800 list it was determined that the final drive spline set and the 'U-Joint' would need to be replaced. Yes, the parts are available but these three things ring up to nearly $425.
She still needs a complete front end, exhaust, carbs, tires and a host of other things. This will require some thought. Even if the engine is easily repairable, the cost may be in the area of $1500. I can buy a used, operational VX800 for that price.
Time to sleep on it...
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