Hole in crankcase

whatever was put on cylinder base to seal it is WRONG.
it looks like rtv was used when it should only be the stock base gasket....that is part of your problem and im sure a huge airleak.And detonation is ocurring/or cylinder is not even sitting flat
 
looks and sounds like the connecting rod bearing is toast.
sadly...it's time for a full rebuild..... crank rebuilt, new main bearings and seals, and topend
 
I had a guy offer me 300 for it am I getting ripped off i belive it's a 98
 

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I wouldn't give $300 for that. Take the money and run.

It amazes me how many people leave their Blasters outside in the rain and snow.