These are RAVE,(Rotax Adjustable Variable Exhaust)valves. it looks like the bellows might be leaking oil and alowing it to seep out adn down teh exhaust area. Here is some info about the RAVE valves, and if you decide to take them apart it will help you out. These should be cleaned anually.
RAVE VALVE annual cleaning
________________________________________The RAVE, (Rotax Adjustable Variable Exhaust) valves are located above the exhaust valve. There are 2 of them per engine. They are round with a red adjustment screw in the middle. It has a clip that holds it together. How they work is that they open the exhaust port larger as the engine rpm's increase. When the rpm's drop down so do the RAVE valves. They work on the principle of the pressure of the exhaust system. Rpm's increase, pressure increases and the valve opens, rpm's drop pressure drops, Valve closes. They should be de-carbonized annual. To disassemble the rave valves, remove the spring clip on top, remove the black cover. There is a spring under the cover. Remove the piston by turning it with a metric socket. On the bottom of the piston is the rubber "Bellows" be careful with the small retaining spring that hold the bellows on the piston. Remove the 2 allen screws that hold the base on the cylinder. Remove the base and gasket. The long valve won't fall in the cylinder just pull it out. There is an o ring under the base, on the shaft of the guillotine valve. Be careful to see how it came apart as it has to go back together that same way again. On the base, notice the notch that it is facing down. Clean all the carbon off the guillotine valve. I use carb cleaner and 400 grit paper. Check the bellows for any small pin holes. If so replace it. If not, reassemble it on the clean guillotine valve, and install it back on the engine the same way it came apart. The guillotine valve only fits one way. The one closest to the exhaust pipe will come off differently then the other one. You will have to remove the allen screws and turn the base so it clears the exhaust pipe. I would do one at a time in case you forget how it goes back together again. This way you can look at the other one and copy it. Do both engines 2 per engine. Take your time and if you have questions give us a shout. We'll be here to help you out.
If the RAVE valves are dirty it will not rev up correctly and could be causing your problem.
The adjustment knob (the red cap) should either be screwed all the way in or flush to the top of the black ring of the cap. This will only affect performance, as far as how it jumps out of the hole or how well it runs for extended periods at WOT.
I hope this info helps you out.
Karl
