Kind of explained the question in the title- my glass (or plastic) sight on the engine has a milky white, almost cream cheese looking texture on it (inside).  My friend has my camera so i havent snapped any photos yet.  Does anybody know what this is or could be?  And how big a deal it is?

Typically this type of substance is due to water in the oil.  Is this an air-cooled or water-cooled bike?

It's condensation (water).
One of the by-products of combustion is water vapor, and some gets past the rings and into the oil.

Usually clears up with longer/harder riding to get the oil temp up over 212 degF to boil off the water.

The motor is toasted. Don't bother trying to fix it.   Look, I'll give you$100 for the bike shipped to Washington State.

SOLD

thanks for the info guys

seriously, not a big deal.  my previous bike got this somewhat frequently.  Never an issue.  don't only run your bike for a few minutes at a time, or it'll get worse, and change your oil when you are supposed to, and don't worry about it.
W

if you do a search you will find at least one other thread here that discusses this issue and several on TOB.

Since it's such a reoccurring topic, I went and made a How-To thread in that section

Every fall this issue comes up.  A sticky in "Tech" may be a good idea.

>> Every fall this issue comes up.  A sticky in "Tech" may be a good idea.

My fix was on TOB a couple of times, so simple.

After a ride park against a wall with the 'bike leaning to the Right so the oil level is above the window.

It's a mix of oil and water, harmless except when it obscures Monster windows

Sheesh, guys were talking about flushing out their motors with solvent, replacing the window.....

Quote from: WTSDS on September 26, 2008, 06:57:06 AM
After a ride park against a wall with the 'bike leaning to the Right so the oil level is above the window.

Even easier - after you've parked after a ride, while the engine's still hot - undo the filler plug and leave it open for 15 seconds.  Then cork it again.  Do that a couple times and the milks goes away.

Quote from: yuu on September 26, 2008, 09:20:11 AM
Even easier - after you've parked after a ride, while the engine's still hot - undo the filler plug and leave it open for 15 seconds.  Then cork it again.  Do that a couple times and the milks goes away.

1+  it workes for me; just dont leave the oil plug off; .... I'll let you find my old post and story ...

... I also beleive this is from water in the gas and winter condensation as mentioned above or a combination of the 2.   I think if the gas is slightly milky / cloudy it has some water contamination in it .... anyone know for sure?