Are you talking about the RV oil bottle that is hooked to the case? That is strictly an oil bath for the rotary valve shaft. You will need a larger external oil tank for the injection oil. It is shown pretty clearly in the Rotax installation manual. If you don't have a copy of it one is posted on this site in the files and forms section.
The skyfox (as noted in your attachment) and other knock offs should not be a direct comparison to the Avid or Kitfox. There were lots of companies popping up to try and grab a piece of the homebuilt pie, and many were not any type of engineers, just guys welding sticks together trying to make a cheaper copy of an existing design. Think of modern day cheap Chinese knock offs. Kitfox still uses the .062" spars on the latest models with higher gross weights. The wood spar stiffeners are indeed spar stiffeners, however, I guess by definition they are also "anti wrinkle devices". The VNE change was not just about the counterweights. The counterweights were after a Boeing engineer did some square rooting and thought that a flutter under certain conditions could develop.
With all the cameras out now that you can pick up for around 20 bucks its beyond me why everyone does not have one in the tool box. Pulling the springs and popping the elbow out will save you from having to pull the manifold and you can get a good look at the piston running the camera into the y pipe. I picked up one that uses wifi to the phone and the picture and video quality really surprised me. Run it down the plug holes as well to look at the cylinder walls. I can see it fine on my phone, but going wifi to the laptop and having the big screen is much easier on the eyes.
Check the airworthiness. Mine says rotax all on it. Therefore, I can put any rotax engine on it I want to.. Going back to phase 1 is your call but I don't know of anyone else who has bothered with it. Gotta love the world of experimental I am very interested in your flight reports with the 670.
Joey has done this on his avid a couple of times. Drain the tanks and fog then engine good and you should be good to go. Like Jeff said, blocking off the spars to keep critters out is a good thing as well! Depending on what battery you have you probably don't need to do anything other than maybe disconnecting it.
Those are the matco MC-1 masters. The rebuild kit is around 10 bucks each. It is really stupid simple to do as well. http://www.matcomfg.com/MC1REBUILDKIT-idv-3122-46.html
I would pull them apart and clean them up and make sure the rubber "foot" is still attached to the bottom of the piston and that the foot is swiveling like it should. They are pretty self explanatory when you pull them apart and they will make you scratch your head and wonder how the hell they stop you and give you any pressure at all
What masters do you have? sounds to me like it time for a "rebuild" if its the MC1 masters (matco with built in resi) then its pretty easy to pull them apart and look at them. The little rubber pad on the bottom is barely more than a bad joke and might have come loose from the bottom of the plunger.
AS much as this has been discussed and beat on around here it kills me to see another bird bent up due to a well known and well documented design fault. It seems the "it hasn't happened to me yet so it must be good" mentality can only be overcome by bent birds.