Suggest you check the bearing in the kick-start housing. According to the bearing list in the Technical Section on this site it should be a 6004 2RS. The rubber shields act as the seal. Suggest also you check the bearing on the end of the layshaft while you have the kick- starter off. If it is a bronze bush no worries, if it is a small needle roller would serious recommend considering changing it for a new one - they are known to fail. My bearing had a cracked cage and I believe Smokey Paul had a cracked cage also. The bearing is very cheap from Simply Bearings or Bearing Boys, again the size is listed in the Technical Section.