Despite the engine not having been run since 2000, it was in good condition with little apparent wear, except for one thing.. the splines on the output shaft were badly worn. The engine came from a bike that was fitted with lighter CMA wheels many years ago, and these wheels didn't have a cush drive. Either this or a loose sprocket must have caused the damage.
Since I intend to fit a 5.5 inch rear wheel and 180 tyre, I bought a complete transmission from a later ZR7S, which has a slightly longer output shaft, while being surprisingly cheap..
ZR7S transmission..