reemo,
As you may have read in one of my earlier postings, I recently blew a rod in one of VZ-R II's due to the high speed needle housing backing out and leaning the motor. Well, after ordering another VZ-R II (we run a Spec series that requires this motor) I also bought a new piston/sleeve and rod to rebuild the original motor. When I reassembled it, I notice some slop on TDC. I am told that this is due to either a worn wrist pin in the piston or crank pin. I guess my next step is to disassemble the motor and take the calipers to the pins and see where the problem lies. Sounds like you experiencing the same issues. I am told that the motor will run in this condition, albeit not for long. Keep in touch and let me know what you find on your power plant.
Roger