Hey, Angus!
Good pic of the shiftshaft's chainguard. According to that list in post #38, that guard was implemented early in the XS1's production. What I find interesting on yours is the early onset of the chain gouging the rear of its metal top. Same scenario on mine. Yamaha must have noted this and at some point in the bike's production, that chainguard was modified to include a black plastic slipper atop the guard.
Ding on the chainguard is a mystery. I have similar markings on mine in that same area. AND, I recall seeing a pic some time back of another early model with the same/similar ding. Did we all have the same Yamaha mechanic that would inadvertently drop a wrench onto that same spot? Wierd.
Our '60s and early '70s Hondas came from the factory with clip-type drivechain masterlinks. It wasn't until somewhere in the early CB-750 production that we had to deal with those thicker/hardened 1-piece drivechains. So, I'd expect the early XS1's had masterlink type drivechains. Besides, the early service manuals show clip-type masterlinks for all the 70-74 models.
The '306' casting number inside your left engine cover is the same as mine. Somewhere in the middle of the '71's production, Yamaha started slipping XS2 parts into the assembly stream, like that type 'B' camchain tensioner system and the left engine cover. You should see 2 bosses at the bottom of that sidecover for the bottom mount screw, each for whichever engine case it would be fitted. Rear boss drilled out for the XS1B, front boss drilled for the starter-equipped XS2.
The 'blockyness' of the lettering I was referencing earlier applies to the 'YAMAHA' lettering that's embossed in the separate round rotor cover. It's unique to those early covers, with the '256' casting code. My '306' sidecover came with a matching later rotor cover, and I was curious about yours. My early-half production '71 has the '256' sidecover and matching 'blockier' '256' rotor cover.
Too bad about the acid spots atop your left aircleaner cover, but that is indeed genuine. Both my XS1Bs experienced that same malady.
Next time you have the fuel tank off, check the wire colors on your ignition coils. Should have brown&orange on one, and brown&grey on the other. As far as I know, the coil with the brown&grey wiring is difficult to find...