Scott,
A couple of things first. Did you test the compression in that cylinder
(and the others)? It could be a bad ring(s). Also, as you stated it maybe a
bad head gasket. If the compression is near equal in all cylinders than that
is not likely it, but worth checking.
What does the spark plug look like compared to the others. Is the insolator
color different. If not then it likely isn't oil in the cylinder and
probably not the valve seal. The seals usually harden from heat and
eventually crack and fall off the stem. I am of course assuming that these
are simple umbrella seals. I'm not to sure how time would age the seals, but
1200 mileof heat is a rather limited to do much damage. If however, the
seals are bad then this is likely just the beginning and eventually all will
have to be replaced.
Theo is right there are adapters to use compressed air to hold the valve
while removing the spring (with the correct removal tool). However, I have
not had much success with it. Everytime I have tried this method the
retainer locks would not pop loose before the valve would open. The end
result is that the retainer locks would not release and the air would rush
out past the open valve. I used a spring removal tool that pushed down on
the retainer. There are other tools that go between the retainer and spring
and compress only the spring that likely work with better results.
I have used the cheaper rope method. Here you use a thin piece of rope and
feed it into the cylinder at top dead center (with the engine locked in
gear). Eventually enough of the combustion chamber is filled with the rope
to keep the valve from dropping. Because I now had something to inhibit the
valve from moving (much) I was also able to to use my spring compressor that
pushes on the retainer. It was cheaper and with my removal tool worked best.
I'm sure you want to get this fixed, but be careful not to rush to fixes
that aren't. As it relates to an engine that seems to be rebuilt with only
1200 miles on it, then parked for about 15 years, I'm wondering why????
Maybe there is something you were not told?
All the best in this quest, Tom Witt B9470101
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