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Originally Posted by S Car Go
Your problems are easily solved by replacing the valve stem seals and one or more hydraulic compensators. The symptoms you describe are quite common for these engine. I would not think you need new rings as these engines usually go over 500k before needing new rings. Your "bottom end" is fine im sure. Do your seals and have the valve clearance checked and fixed if needed. You will be fine.
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I'll second that opinion. I did my own seals, helluva job but stopped the oil burning completely. Also, try some quality top-end gas additive to see if that doesn't clear a clogged compensator, which it might, like Techron.
P.S.: Are those pointy things on the consol your addition, or the previous owner's?