You said that the seal could be the problem months ago - right diagnoses!
Actually, its somewhat rewarding mechanically to completely bottom one of these motors. Don't worry, I will take pride in rebuilding with new parts and making a 'virgin out of her'. It should run a bit crisper after the rebuild.
I'll be keeping the OEM forks, but I will have a set of great condition RVF Forks/ Yokes & Stems / CBR900 Nisin Breaks for sale in a few months time
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Rich
MC21 Track Bike / RS250 NF5 'Spencer', NX5 'Cadalora' & NXA 'Aoyama' / RS500 / Two Brothers Racing RC30