I cleaned the bike and I noticed that the shims between the oil lead and the valve covers/head were really thick (2mm). After some measuring I think they really are to thick and have blocked oil flow to the head/cams. I swapped them for thin copper shims.
I started the bike and it was very, very smokey:http://youtu.be/fL8qxwclljk
(check the last part of the video) I was hoping it was residue in the exhaust from previous start attempts, so I took it for a short ride to get it up to temperature, but the smoking stayed, especially under load.
Am I looking at some more serious damage inside the engine, or could t somehow have wet sumped?