Thanks guys for the input.Upon further inspection I also came to the conclusion it's most likely a burned exaust valve.I would think it would be pretty hard(but not imossible) to blow a head gasket on that motor.I still have not truly dug into this car yet.But I am pretty sure I will be pulling the head off it.I also still have to clean out 1 side of my garage to start work.I also found out that manual is only available in the UK version.I will either send away to Haynes for it or try my luck on ebay.