I have been putting off fixing the valve problem on my bike now for a few months. The valve seals and or seats are having issues, and on startup she blasts some massive clouds of blues.
I was told by my local mechanic that stripping it down and re-machining the guides, new seals and valves would cost around $1000. This seems rediculous to me, and Im going to give it a shot.
I have 98xrl engine that came with the bike, and apparently the transmisson is seized but other than that, shes in good shape.
A few questions :
Can I pull the head off, without removing the entire engine from the frame?
Is there a worry of stripping the head bolts if im not careful?
How could I tell if the head on the parts engine is in good shape? Would there be play in the valves?
Or is removing the head as easy as just unbolting it and pulling it off?
Thanks alot everyone.

If the clouds are truly massive it could be the guides, but it's likely just the valve seals. Guides will cause oil consumption. The smoke on start is not really a mechanical problem as far as engine reliability. It is more of a cosmetic thing.

Yes the head comes off with the engine in the frame. You have to remove the carb and intake boot. The valve cover rotates into the space of the carb. The head comes off much easier.

Careful or not there is always a chance of stripping the head bolts.

If you don't have one, get a manual before you start. They can be had from Honda, on Ebay, or there are a few links around here to download one. It describes the inspection pretty well. If you don't have the tools, just take the head to a shop and have them look at it.

If you are taking the head off, you might as well remove the cylinder. It's not that much more work and you can check the rings, piston, and cylinder bore. You can also get a little look at the transmission gears.

You can do all this with the engine in the frame.

I pretty much do my own disassembly and assembly. I leave machine work to a shop. As I have been collecting tools I can do more of the precision measuring, but when I don't have the tools I take it to a shop.

i say : "go for it!"
its not that hard and with some guide help from guys here at Thumpertalk, you can easily do it and save some big money...

All good advice. Take your time and read as many threads as you can there is some great advice on here as well as a wealth of knowledge from everyone.

I am just finishing up doing what you are about to start. Take a lot of photos so when you have a question you can post it and get your questions answered.

One time that is really good is to take cardboard and draw the shape of the vavle cover and put the bolts in it in the location they came out of make reassembly much easier.

Good luck!