New owner checking in...

[4strings]

I'm a new rider as well.  I got my 93 GS500E a couple of months ago and I was finding many of the same things you were.  The tough shifting, neutral light saying it was falsely in neutral, and the gunk by the side stand.

Like the others said, ride to find what works the best for your bike.  You'll find exactly what you need to do to work out those little kinks. 

Its great that your father is going to help you out with it.  My Clymers Service Manual is like my Bible.  Wrenching on my GS myself has helped me understand my bike a whole lot better and is great bonding time.  Plus, when you put it all back together and take it out, the feeling is awesome.

~4strings

[JB848]

Looks like chain lube collected in the front sprocket housing.  I use a lot of chain lube and have to clean it out once or twice a year to stop it from leaking out.  No problem.

+1 when I bought my 2004 used a year or so ago I took it on a test ride and was satisfied it was road worthy to ride the 2 hours home from Long Island NY to Central NJ.

I had planned on doing a full a maintenance on it the next day and did. After a closer inspection I had similar excessive oil just like the picture you provided. To my surprise after taking the cover off for futher inspection there was like a mouse home in there with straw and crap!. I cleaned it all out and have never had it happen again in 3000+ miles and yes I lube my chain properly and often.