
Originally Posted by
4JGtootsie
You have a fine old school engine.
I would simply begin with valve adjustments, good compression will greatly rely on good seating of the valves giving a tight seal, worry about worn piston rings and walls when you have already done all the other test.
The cylinder head gasket will be the next.
The third will be cylinder head check up (dismount head from block), take a close look of the valve condition, seats, guides and seals. Warpage and leaktest of the head should also be checked.