Yeah, oil is supposed to be that high in the engine. Otherwise you'd have bigger problems than an oil leak. Since you had the cover off a few days ago, I'm leaning towards a gasket leak issue. You did use new gaskets and clean both mating surfaces real good?Is the oil supposed to be that high in the cylinder where it could leak out? I thought that the oil would drain down below the head cover gasket.
But I have a bigger question........ You mentioned that you had it on it's rear stand. I wasn't aware of a VT-750 Spirit having a rear stand? All the one's I've seen only have a side stand. What's up with that?