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It certainly could be a vacuum leak.
I'm stuck on how you got XR stuff to fit. I have a CB250, and the frame of architecture is larger in almost every way. That said, I'm working with a 69mm bore, so the mouth in the bottom end is larger, and will not accept an XR200 base gasket. I'm intrigued that you got a Honda 65.5 piston to fit; that's good news for another build I'm considering.
Is it a genuine Honda piston, or a Wiseco? Perhaps the compression is too much for a stock China setup that does not have a compression release (like the XR does).
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Weldangrind
"I figure I'm well-prepared for coping with a bike that comes from the factory with unresolved issues and that rewards the self-reliant owner." - Buccaneer
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