I know this is basic for you guys but I need to know if my oil level is good. I don't have the owner's or Hayne's manuals so I'm going on some old-old-old school knowledge. With the engine warm the level in the sight glass is about 1/2 full. Please help me.
p.s. I took her on highway yesterday, at 70mph she was running 5000-5500 rpms and smelled like burnt oil. Any guesses?

Spain

I don't know if oil expands or contracts.
I think it would be best to check with engine cool so all the oil will have a chance to run to the bottom. That way it won't look like it's fuller than it actually is.
I go to the just to the top of sight glass.
My other bike had a leak when I bought it, oil would drip on the exhaust and it smelled like engine was burning up or overheating.

See that's the thing. I cannot tell what the level is cold. The sight glass is dark. When I open the fill plug I cannot see any oil level.

Spain

I figure it runs into the pan when sitting cold (no level in glass) and after I warm it up the oil is circulating and then I see level in the glass.

OR

All the oil runs into the pan and the glass is full (oil in glass but full) and when it is warm the level drops due to oil circ'ing around the engine.

Spain

Bingo!

okay. so is the oil level too high?

I'd say the oil level is a little too high. A little. This would explain your oil in the air filter (coming up through the crankcase vent tube).

With your bike level, your sight glass should be full cold, and pretty much the same even with the engine warm.

Check and see if you are leaking oil. Are you using 100% synthetic? Does it have 'Energy Conserving" on it? All motorcycle oils, especially for older models, need to be carefully chosen.

a ) Energy Conserving oil will cause clutch slippage. It's pretty bad for your clutch.
b ) 100% synth oils have detergents in the mixture that will 'clean' your engine. Seeing how most of our engines are 20 years old +, it might cause oil to start leaking from the gaskets, even if they are new. Using conventional oil will stop that issue.

I put Mobile 1 Synth in my Maxim for around two years. Started to seep out the front and caused a 'burning oil' smell. When I went back to conventional, it stopped leaking oil.

Also, check your gaskets at the top pan, and the middle of the engine - ensure they are not leaking oil.

The final cause of leaking oil - blown head gaskets.

Good check for that - run the bike, hold your hand over the exhaust - you will see black specks of oil on your hand OR it will smoke a light blue.