Well I was at the dealers today at a demo ride event and had the opportunity to inspect other bikes there which all had the same black crud on the exhausts. So it would seem that it is just condensation spitting out at start up. I suspected this already since I had wiped it off when warmed up and no more had come out by the time I got home yesterday. So it only spits out at startup when cold. I also had them adjust my chain tension which was way loose. So the bike is performing much better now. Oh. I tried out and XSR900 which was kind of fun. It had a ton of power. Very easy to get the front wheel off the ground. But I prefer a bike that has usable power and which you need to actually shift through the gears. I never got above 3rd gear on the demo ride and basically just stayed in that gear the whole time because I didn't need any others. I also found the seat less comfortable than ours but other than that it felt much the same. Take care!