A good friend of mine (Don) stopped over to take a look at my latest addition to my toy collection, Don raced 250's for years and has seen about all the modifications done to 250's and knows about all the common problems and fixes, below you can see where the transmission case is cracked around the mounting bolt, this happen because one of the support mounts were not installed that helps support the cases See the rust around this bolt, that is a good sign that the case was flexing in the frame, this will happen no mater how tight you tighten the bolts, when the clutches engage they are trying to pull the engine and transmission together. Don suggested adding this mount, it starts at the 2 top transmission bolts, if you look at a stock frame 250 these are used and mounted to the frame. 3/8 threaded rod is used, you leave the other transmission mounting bolts a little loose tighten the threaded rod until the case moves back then tighten the case mounting bolts and lock down the jam nut on the new adjuster. One of the case to frame mounting bolts is stripped in the case, the fix is to drill the hole out and all the way through the transmission then install a longer bolt and use a nut on the outside, I will do this when I take the transmission and apart for inspection, right now the seals, gasket and drive chain are on order.