What could have caused this?

The thrust washer is there to stop lateral movement in the crank bearing, without it the rod will slap around and will wear against the crankshaft halves.

The crank is pressed together and must be correctly aligned, not a job that can be done in the average shed.
 
similar rebuild process.........

 
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Why would the crank need to be rebuilt? The thrust washer needs to be replaced, crank still spins around nice.

How does the crank come apart and be put back together? I think i read that it needs to be pressed back in with a good press, and needs to be balanced?

Usually its a waste of money to rebuild them, for not that much more you can get a vitos i think they are going for like $150 new on feebay? My local dealer got me one for $125 and last i checked it runs about $100 to rebuild a crank if your getting it done cheap. Ive only had 1 rebuilt before and thats only because somebody gave me a new rod.
 
The one thing I can say about properly rebuilt stock crankshafts is the stock crank webs are superior to aftermarket ones. They're super strong and true.

There's a video floating around on Youtube of a guy showing exactly how out of size (diameter :o) and out of true a Hotrods (arguably, one of the better suppliers) CR250 crank is.

It is, in fact, too large around to even fit inside the crankcase. 8-| You think their QA department would have caught that one!
 
that /\ video is of a wiseco crank.

 
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Thanks for everyone's input on this. Like i said, i sent Ken an email. Just waiting on his reply. Im gonna go for it and let him do his work on this engine. I can put the thing togoether, thats no prob, i just need his skills for the measuring and dialing it all in. Meanwhile ill work off frame.

I saw the kits on ebay for Wiseco. But after watching a vid one of you posted, im gonna opt out of that. Plus, if i dont need half the stuff it comes with after Ken inspects it, then its a waste.

Thanks again all.

-Chris