After going back to your rebuild thread and looking at the pictures of the heads... My vote is a dropped valve seat. They didn't look good even then.
I just aquired a 1969 Bug a couple of weeks ago that I am going to go through. Its been a long time since I did one of those too. Going to be fun!
Fifteen years under a tarp outside, add a little gas, give it a battery, and it runs.
