[Paul Thomas]

Tim,
Do what Lombard said, and use a leakdown tester. Eastwood sells a nice one. You can listen for the leaking air and a good tester will tell you where the air is going too.

Before i wrote the motor off, i would strip off the intake and exhaust and look in the port on both sides to see if the valves are seating right.

Worst case, if it is toast, i would look for a nice early motor that someone is dumping for an upgrade. You'll spend a whole lot less and you can take your time disassembling the T.

Paul