Thank you all for the help and advice!

The head gasket on 1 of the cylinders is actually broken (maybe a combo of the too loose all around and that too much back-pressure bone-head exhaust event? I've ordered new head gaskets and base gaskets.

The evidence and consultation here and elsewhere seems to indicate loose heads got me here, that likely I could have tightened them all up a bit in the car and gone on with life.

You have noted areas that could stand to be addressed and I appreciate the help, yes, I have Dalivar studs, I need to re-check them to see if thats residual anti-seize or scratched paint (I gave them a good look a while ago) And yes, I understand they aught to be changed to steel. As at this moment I have more time than $ I'm going to gamble on them for a little while. This time I've learned to check the head studs every time I do a valve adjustment.....if/when I find one broken I'll have another few weekends of project :)

So for the moment I'm going to button it back up, re-set everything and try to do a more careful leak-down with it out of the car to see what I get.

ring gap positions
 

In the engine assembly section of the factory manual it say's and shows where to position the piston ring gaps in relation to the hands on a clock.
Top compression ring at clock hand position 4, second compression ring at 10, and oil ring at 2.

This is how I installed mine around a week ago and it runs great!
Hope this helps.
http://forums.pelicanparts.com/uploa...1399385589.jpg

Did you check ring end gaps? Did you check the rings were installed the correct way up/down?