My bet is that there are broken rings.-------This ( broken rings ) will happen to all these crossflow motors.----Some sooner than others.----Rebuilt the crossflow V-4 motors many times.----First one in 1981 if I remember.
Upper Cylinders look great, even still showing the Cross Hatching, the lowers look like a Head Gasket Leaked, with #3 ingesting something or spitting a ring.
Thanks everyone. I appreciate the input and advice. I have decided on getting a rebuilt short block and won't bother with trying to hop it up to a 110.
