Recently picked up a small project 1996 xii Memorial Day weekend for 750 bones, had a fuel leak issue and some fire damage to wiring on left hand side. Rebuilt the carb rack due to leak coming from center fuel T. Managed to get the carb rack in, and airbox back in (after carb rack) by gently prying the gas tank up and pushing it in from the coolant reservoir side. Balanced the carbs and adjusted fuel mixture screw until I felt the bike revved “happily”. Rode the bike to get gas where it wouldn’t restart and had to bump start it home. That’s where I found out the alternator was bad. Replaced the alternator and fuel filter last night and she’s pretty happy, flushed brakes and clutch with fresh fluid this morning, and currently seafoaming the oil and fuel before I change the oil. So far my only unresolved issue is the idle seems to “hiccup” upwards randomly every other second or so. Any idea of what to check for that would be greatly appreciated and I’m super happy to be here. Can’t wait to put more miles on her!
That's not a lot to go by. My gut feeling is a carb issue. Not clear what your "rebuild" entailed. As a guess, maybe a carb piston isn't sliding right through its cylinder? The whole diaphragm/piston thing is touchy on CV carbs. If it's sat around a while, you'll probably need to do a full-on ultrasonic clean of the carbs, paying special attention to crud on the piston/cylinder.
Other than that, maybe wrong float height?
i did actually ultrasonic the carbs once they were completely apart, i even replaced the diaphragms themselves as they came with the kit. a tank of gas + seafoam later and it seems like it's running better so im just gonna let it be for now. I have come across another issue though and some insight would be greatly appreciated. after my first short ride i noticed the washers on the slave cylinder hose were leaking brake fluid. new washers, no leak. i just changed the oil today after work, and when i took the bike to my local pepboys to dispose of the oil, i noticed smoke coming off the left exhaust. tracing the small oil leak upwards it appears to be coming from the "slave cylinder spacer" p# 92026-1263. is that just a spacer or is it a seal too? i tried looking for any other possible sources for the leak and that's the highest wet spot i can see.
Okay ignore what I said about the oil leak it wasn’t oil it was the clutch seal leaking past the piston, I removed the slave cylinder and just gravity is pulling fluid past the piston seal. this is also my first bike I’ve ever worked on so I appreciate any patience sent my way haha. I’m a mechanic for cars and trucks and airport equipment but bikes is uncharted territory for me
92026-1263 is just a spacer which provides working free clearance for the clutch pushrod when the clutch is engaged.
Obviously yours does have said spacer but I have seen one without this spacer and there was clutch slippage due to the lack of rod clearance. Once we installed a used spacer the slippage disappeared.
As you are probably aware already, a dental or HF metal pick will clear any corrosion from the rubber seal lands of the slave cylinder casting before installing new sealing rubbers in the bore. Sometimes this corrosion will allow the fluid to "bypass" the rubber sealing ring.
Anyhow, by the sounds of it I'm sure you have seen it all before so happy riding once you have shaken all the bugs out,
Dave
Thanks Dave, got my parts in yesterday. New seal, and some scotch brite to clean the piston and bore and no more leak. Wife and I put 50 miles on it today and she seems to be running good. Still has the little idle hiccups so I’m not sure what to do about that, I did have to use the old fuel mixture screws because the new ones that came with the kit were different and I didn’t want to risk them being wrong. (They didn’t protrude into the throttle chamber like the oem ones)
New to me xii, few Q’s
Replaced the alternator and fuel filter last night and she’s pretty happy, flushed brakes and clutch with fresh fluid this morning, and currently seafoaming the oil and fuel before I change the oil. So far my only unresolved issue is the idle seems to “hiccup” upwards randomly every other second or so. Any idea of what to check for that would be greatly appreciated and I’m super happy to be here. Can’t wait to put more miles on her! 
this is also my first bike I’ve ever worked on so I appreciate any patience sent my way haha. I’m a mechanic for cars and trucks and airport equipment but bikes is uncharted territory for me