Trans Locking up?

Look for meal flakes in the oil, large chunks of metal in oil (when you drain). When you drain oil estimate if you had enough in it. When you pull clutch cover look for anything that is obviously broke, or by wiggleing worn, kicker assembly, everything in clutch area. If you find nothing, pull plates out of clutch, chain off, and start rotating shafts and shift it thru gears to see if you detect anything. Did I mention checking chain/rear wheel?

Novel idea, after all this consider going on a CR forum.
 
Ha! Do you think he'd get this kinda expert-tease over there?

Probably not :D

Because these (motorcycles/quads) are basically all the same we can offer basic trouble shooting. However no one has chimed in that has an 89 cr125 to say "this xxx is a known problem with it." That's what I love the most about this forum, everyone willin/trying to help no matter what, even if it's a 4joke. I:I
 
Houston we have a problem!
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welll theres ur problem! lolyea it probs just chipped off, and by looking at the nick in te clutch pressure plate, looks like it got jamed between the pressure plate and bottom of the case....... if u havent already figured that out ye. lol just stating the obvisious! get a tusk clutch kit off ebay. there like $30 and there really good. i havent had mine slip at all!