I'm just looking for some expertise in what to do here. This engine is my daily driver, it was starting to miss and burn fuel in the exhaust, had 150k on it, leakdown test showed no. 3 was losing 40%, all others were holding tight at 15% loss, wet vs. dry compression on all cylinders was about 15% increase on wet.
Upon teardown there was massive buildup of crud (oil sludge) in the lifter valley, and I think I found the problem with the no. 3, the intake lifter there was sticky, hence the intermittenance of my missing problem. It tooke a vice to compress the plunger and when I did, it didn't come back up. Cam had massive varnish on it. One cam bearing looked a little scored, one main bearing looked a little score, nothing terrible though more or little burn than a score. Cylinder walls look excellent, pistons only needed slight tap to come out, no ridge reamer nessesary. Vavle stems had alot of oil on them (it was starting to burn oil too)
So what I'm thinking is to hone it, buy stock main bearings, stock rings, new cam/timing set. What about the heads? They look fine, I'm thinking new seals? (guides are part of the head right, can't replace those?).
Not looking for any radical performer here, just a good dependable Daily driver.
I know I could buy a crate motor for arond $1500, but I kinda of want to do it my self, just for the learning experience. Never done a complete whole engine before. How much does machine work cost? (I'm thinking hot tanked and honed)
What would you all do?
Upon teardown there was massive buildup of crud (oil sludge) in the lifter valley, and I think I found the problem with the no. 3, the intake lifter there was sticky, hence the intermittenance of my missing problem. It tooke a vice to compress the plunger and when I did, it didn't come back up. Cam had massive varnish on it. One cam bearing looked a little scored, one main bearing looked a little score, nothing terrible though more or little burn than a score. Cylinder walls look excellent, pistons only needed slight tap to come out, no ridge reamer nessesary. Vavle stems had alot of oil on them (it was starting to burn oil too)
So what I'm thinking is to hone it, buy stock main bearings, stock rings, new cam/timing set. What about the heads? They look fine, I'm thinking new seals? (guides are part of the head right, can't replace those?).
Not looking for any radical performer here, just a good dependable Daily driver.
I know I could buy a crate motor for arond $1500, but I kinda of want to do it my self, just for the learning experience. Never done a complete whole engine before. How much does machine work cost? (I'm thinking hot tanked and honed)
What would you all do?


Besides, aftermarkets are generally considered to be more accurate/consistent than stock. 
I know, sorry about that.