cam chain guide blade wear

[Saculia]

Hi,
I have passed my beloved gs500e on to my significant other, for her to learn how to ride on.  I took the head and cylinder off to repair a base gasket oil leak and also to perform a valve adjustment.  The bike has given me 50K miles of reliable service.  About 8K miles ago I had a suzuki dealer rebuild the top end because it was consuming about 1/4 of a quart of oil / 1000 miles.  They overbored it .020 over and put new pistons and rebuild the head. 

After opening up the engine yesterday, I noticed that there is a little chipped area on the cam chain guide blade that is sandwiched between the engine cases.  I was wondering how bad that wear is?  I was planning on having her ride the bike through the season and then removing the engine to overhaul the bottom end.  I just want to make sure that it will not fall apart during the next 5K miles or so.  Also, would rounding off the sharp edges help any?
I have also purchased a new cam chain tensioner for the bike.  The old one was working, but it may have been getting weaker.  The cam chain has not stretched excessively as it is a less than 158 mm / 21 links.  It is about a couple of mm less than that.  Cylinder compression is 175 ft lbs / in^2 in each cylinder while the engine is cold.  This is with the two exhaust valves having no clearance what so ever.  I don't know why they did that at the dealer.
Any help would be greatly appreciated.

Here are a couple of pictures of the problem area:

[Saculia]

Anybody have a clue about this?  I have done a bunch of searches, but all I have found were instances where the cam chain guide blade had broken in half and the cam chain was rubbing on the tensioner itself. 

[BeerGarage]

Saculia

What worries me is that the wear looks so rough and jagged.  My guides have grooves worn into them, but they are smooth tracks worn into the plastic by the smooth chain sliding along the guides.  What is causing that rough jagged wear?  Is the chain breaking?  Have some chain saw links in that chain?  Hmmm...

Exhaust valves with no clearance?  Gunna burn them.  Change valve shimsbefore you burn the buckets and have to change those too.  Though I have some buckets for sale too, so maybe you should just wait.

Good luck

Post lots of pics.

[Saculia]

I am sorry, I messed up.  It was the intake valves that had no clearance.  The buckets on all four valves looked fine.  The front cam chain guide looked perfect.  I examined pretty much the entire chain before removing the tensioner and the cams, and it looked fine.  I measured the amount of stretch at several locations along the chain, and it was nice and even.
It beats me how these jagged edges formed.  I don't even know when they formed, since I didn't go into the engine when the top end was rebuilt.  Do you think that it may be a bad idea to smoothen the jagged edges with a piece of sandpaper, making sure nothing falls into the engine?