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i think your plan sounds ....sound. the very low cylinder should leak a lot either down or up or both. any significant leakage down is a bad sign.
if you do end up pulling the moror, then there is another whole range of optins to explore from a good used motor to a fully rebuilt exchange motor.
good luck.
tom w
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.  [SIGPIC]
..I also have a 427 Cobra replica with an aluminum chassis.
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