easy to check if youve got an air compressor and a blow gun with the big round tapered rubber nozzle. (or something that will let you get a good seal on the plug hole)
run the engine to warm it up...
remove the rocker cover pull the #2 spark plug then get #2 at about TDC on compression (#3s rockers should be on the rock or alternatively you'll feel a slow breath of air out of the spark plug hole, use the crank handle to turn the engine).
confirm that #2 rockers are free by giving them a wiggle, they should rock up and down the presecribed 10 tho but more is ok for this test. if they arent free recheck the engines position and then unwind the tappets enough to get your movement
put the rocker cover back on and pinch it down finger tight, remove the crank case ventilator, the air horn off of the carby and check that the oil fill tube and dipstick are sealed up (if in doubt remove the caps, apply gladwrap and then use an elastic band to secure)
apply air to the sparkplug hole (50-60psi)
an air his out the carby is a badly seating inlet valve, the exhaust pipe the exhaust valve and the ventilator would be shot rings.... bubbles in the coolant dead head/gasket.
The engine may want to turn when you apply the compressed air so once youve got your engine in the position you want to check put it in gear and apply the park brake...
You may not be loosing compression right at the top so once youve confirmed that its not the head or valves have a friend (2 works much faster) depress the clutch while you or a second helper turn the engine over very slightly then redo the air thing.. pulling all the plugs will make precise movements of the engein possable.
if you get more air in differnt positions of the crank you have an out of round bore, scoring issues or rings that arent playing the game and are on the way out...
depending on how much air is getting past the vlaves removing the head (not that hard if you know your spanners and have a torque wrench) you may get away with an inhead relap using coarse then fine lapping pastes.
hope thats helpful....


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