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My main question is this: assuming the machinist didn't screw up the resurfacing, is it more likely that I've got a problem in the block or a problem in the valves? I'm leaning towards the valves, thinking maybe the valve seals are cooked which may cause the loss of compression.
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Thats a huge compression drop. Being those cylinders are side by side it would almost have to be the head gasket, cracked head or cracked something else but I don't thinks it's the valves or valve seals.
