The Indifference Engine
Join Date: Sep 2007
Location: Edmonton, Alberta, Canada.
2.5" sounds fucking close.
When looking at the bike side-on
Take a string, hold it in the middle of the fork diameter and the triple clamp, then run it down the fork to the middle of the axle. This will give you a rough idea of if the fork is bent or not. It looks a little bent in the picture.
Also, that bike was not dropped, it was crashed. You have scrapes along the clutch cover that only happen when the bike is sliding forwards on its side. That's a pretty wicked dent in the tank, and the bottom of the lower triple clamp looks kind of gouged up.
Also, the bike is now 12 years old and has likely never had the forks serviced. It's time for new oil regardless of if you can get the seals to come back using Blackdog's posted method. I'd bite the bullet and pull them apart and check for straightness... but I don't have a good feeling.
Of course I'm generalizing from a single example here, but everyone does that. At least I do.