Did you chk the oil yet, like tbird88 suggested? If you see water in it flush it out with some cheap oil a time or two, and then when clear add good quality oil.
#1 2008 Honda Trx700xx HMF Performance Exhaust, PCV, Stroked 710cc, 10.5:1 Wiseco Piston, Frt Elka Stage 4's, Fox Podium X rear's, EHS Lid, L8ton 11/16" sway bar, DG 6 Pack Rack, PRM Desert II Bumper & Front Skids.
#2 2008 Trx700xx AMR Reaper, Ehs Big 3, P/P head, Xcalibur Cam, Hard Welded Rockers, +1 In/Ex Valves, +3 Throttle body, 11:1 CP Piston, Elka Stage 3 Legacy Shocks, L8ton 11/16th Sway Bar, PRM Front Skids, Desert II Bumper & Rear Utility Rack.
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