I have a picco .26 maxx as well and i do on occasion see oil and fuel in the bottom of my crank case but as far i know its to keep the bearings lubed up a, i have had no problems with mine. . .i may be wrong, but i have no issues, but as far as knowing if it is fully broken in, thats hard to tell, is it easy to turn the flywheel by hand because those piccos are notorious for being super tight, and if it is super tight heat up the head with a hair dryer to expand the sleeve and see how that goes and if the pinch(compression) feels good to you go ahead and run it just keep an eye on ur temps and u should be golden