I agree, oil is by-passing the cylinder and right on out through the exhaust valve. Well it looks like I have some work cut out for me. If you're going to fix it, you might as well rebuild them both. Maybe I'll wait until fall to dive into it. I'm tired of working on this beast for now. I did a complete frame off suspension rebuild this last fall. I also rebuilt the entire braking system as well as the fuel system and replaced everything from the injectors back to the tank. Spent a ton of money, got several stitches in my hand and I still haven't had much drive time. After I fix the head problem and put in a new tranny (reverse slams from park/nuetral) and torque converter, it will be up for sale. One thing I'm a little concerned about is that I purchased a new Mercedes catalytic converter (go on and ask what that cost) and now it's full of oil. I sure hope this problem doesn't destroy that.