New to KTMs, need help with bike please!

[sungecko420]

So I just bought a late 80's 300 and it wasn't running. So I finally got it running, but I have some problems now. First, when I start it in neutral it runs, but when I shift into gear it just dies. Not really sure where to even start with this problem. My other problem is where the exhaust meets the spark arrestor, there is blackish fluid dripping out when I rev it. Also little spurts of the same from the end of the spark arrestor. Any ideas on where to start with these problems. I am new to bikes and two strokes and don't know much about them, but I am eager to learn as I bought this bike for my Dad and I'd like to get it running and riding well for him as a surprise for Memorial Day. Like I said, any help help with any problems is extremely appreciated!

Thanks
Eric

[bajadog]

Does the bike lurch forward and die when you put it in gear, or just die?

That blackish fluid is probably un-burned 2 stroke oil. Are you mixing it
over 50:1?

[sungecko420]

yes, it lurches forward a tad and dies. I just drained the tank and replaced it with a fresh mix, so we'll see what happens with that. But I would like to ride it at least at little.

[bajadog]

Two things to try:

Adjust the clutch on the clutch lever perch (should be a star wheel).

Turn up your idle a bit AFTER you tighten up the clutch.