Yes the seal does stay in place, they have to be driven on just like in the 2.5 Subaru engine. The valve and guide should not need oiled. The engine I built has close to 500 miles and no problems.
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I just finished up the rebuild on my cb160 and I asked the same question. Because when I tore the engine down I was surprised to c no valve seals on either valve so I reassembled as is but still yet to c how it's going to work!
I think my stems are passing oil as my plugs are oily. Did a top end and new valves, the stem to guide fit was just within limits. I brought new stems and have to ream them to size. Just wondering if the new stems will throw off the center location causing the valves to be offcenter to the seats. Is the best way to ream them in a lathe and then install?
The seats are cut with a tool that uses the valve guide as the alignment point. so do the guides and then grind the valve seats. However a competent machinist will be able to handle this.
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The seals are working fine. The bike has been great. I take it for 50 mile rides usually. In all this time I only had an air leak at the low speed mixture screw. I dabbed some hondabond over both of them to seal.
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