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So I finally had some time to start digging into this engine to see what is going on.
First, as suggested, I did check the valve clearance and it seems all of them are about 0.10mm.
Second, checked the timing again and I can confirm timing was set correctly.
Then I started taking things apart, and once I took the head I saw evidence of water, some rust here and there on the pistons and some rust on the surface of the valves. I did try and shine a light at the valves to see if I can see any amount coming through but I was not able to... not that is is conclusive proof none of them are bent but a quick looksie. Once I took the cylinder jugs out the evidence was there... the piston rings are collapsed, they still move on the piston itself but completely collapsed.
Upon visual inspection the jug does not have anything wrong that some honing should not be able to fix and even though it seems there was water in there I do not see major damage that would mark this engine useless.
So here is my plan:
1) Get new OEM rings
2) Clean up everything and hone the cylinder walls.
3) Take out valves one by one and clean / lap them to the head.
4) All new gaskets.
5) Verify all clearances per the manual.
This will take me some time to do as I only can do this on the weekends but I am excited to see if this engine will ever work again. I do have two more engines for parts if the pistons are too rusty but does look like its very salvageable.
Here is the progress so far of all parts taken off, if anyone likes to see this kind of stuff.
Thanks.
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