Several things could be wrong. First, the fuel petcock (valve) at the bottom of the gas tank should be turned off when the bike is not being ridden. Also, it is possible the valve may not be fully shutting off the gas. This can allow the carb to overflow and leak gas. A stuck open or punctured float in the carb bowl can cause overflow. The float should be light as a feather and have nothing inside it but air. Is the carb securely mounted?
Check for cracked fuel hose or bad connections at the tank and carb. Is the fuel valve body leaking gas where it mounts to the tank? Heck, with the bike being 36 years old the tank may be leaking at a weld or due to rust through. I wish I could work on your bike. The older bikes are more fun to work on than the newer bikes. Post a reply and let me know what you find.
That is a timing issue. The usual cause is the cam and crank are not in synch. If that bike has a lot of use, time to overhaul the engine.
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