Very nice score on the 86-88 KDX!
Those things are gems, truly the best small/medium bore vintage air cooled woods bikes of all time... The '86 Yamaha IT comes close, and the only thing surpassing it in air cooled enduro bikes is the 2-year-only 1991-ish Yamaha WR500 2-stroke...
I'd highly advise you fully epoxy encase the stock flywheel's rotor magnets in proper epoxy before firing it up again. My buddy made the same mistake, and his self destructed. You can re-clock the E-series and H-Series water cooled KDX stator plates to run those with the matching flywheel rotors, but you can also just buy a Powerdynamo ignition direct from vape.eu or whoever their US distributor is. My buddy ended up meeting up with the US distributor at AMA Vintage Motorcycle Days last year and picked up a new ignition system from them. They use fixed stator positioning and use no key on the flywheel, so that they flywheel is the timing adjustment.
There's a really killer build on KDXRider.net of an 86-88, with rear disc, modern fork swap, etc etc etc....
They are truly a masterpiece, being a lot lighter weight due to being air cooled, having an awesome linkage design that's up out of the way and has grease fittings, air cooled electrofusion plated cylinder with power valves! That's a very advanced feature not found on really any other air cooled bike...
If the shock starts leaking or shows signs of leakage, send it to Works Enduro Rider (WER Products) or RaceTech, for a full rebuild and most importantly a hard anodizing treatment. All the 1980's monoshock bikes use aluminum cylinders, but they will wear excessively especially if they start leaking out all their oil... you want to have them hard anodized to extend their lifespan to that of modern shocks. You can otherwise get replacement KYB sealheads from Racetech etc. The remote reservoir hoses will have to be made up from fittings if they go bad.
Awesome awesome bikes, congrats on the score!
Where are you from, by the way? Anywhere in the Eastern US? We ride Southern and Eastern Ohio, Southeastern Kentucky, West Virginia, Western Virginia, etc pretty regularly, some western PA, East TN, Western NC once in a while as well. There's so much good dirt (AND STREET!) riding to be had in those mountainous areas...
Enjoy it!