Hi Paul,
If the rocker cover is causing the loss of compression that would be a first. This sounds like a sticking valve. If it is I suspect it would be an exhaust valve, by the sounds of things the head doesn't sound tat clean. If you get a straight edge and run this down the valve stems with the rocker shaft off you might find one stem lower than the rest. In the past I have sprayed the stem with WD40 and tapped lightly with a copper hide mallet, the hide side.
If you can't find anything there yeap, head off and check, if the problem is a piston you would know when you turned or ran the engine with the oil filler cap off, I would have thought.
As for the gasket, sounds old maybe someone tok the R/C off and just put sealant on rather than buy a new gasket.
Cleaning the sump out sounds like a good idea you dn't want that black pellet type stuff blocking up your oil pump strainer.
Cheers Marty.


				
				
				
					
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  On a more serious note.  Different schools of thought here, me I used an engine flush on an older engine and it disturbed all sorts of crap, when you wash all this stuff out of the engine your only defences are the strainer on the oil pump for the big bits and the oil filter for the rest, additionally on the TD5 you have a centrifuge filter.
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