Thanks a ton MegaDan! I noticed you are on recently and am glad you are finding time back to us!
I thought the increased oil level were caused by blowbys. Further more there were streaks in the "new" oil I changed out.
As for the grinding noise, there were no pattern I can discern. Pulling in the clutch had no effect.
I thought the bolts to the stater were loose but they were actually ok and tight. Was wondering if the kick start were loose but it was not hanging out.
Anyway the noise went away the next day when I rode with new oil and correct oil level and no noise.