Now that was some comprehensive feedback aye?!?

Top stuff.

thanks for the help guys, ill run some more tests and see how i go

aw ya can allso "wet test" buy puting some oil in the cylinder whilst ya test it, If the comp comes up after doing so it would sugest it is the rings.

There will always be some blo-by present even in a fresh engine, its a pretty rough way to check engine condition. like DD said, check your valves for seal using liquid, check the top of your block and the bottom of your head for straightness, if they're fine and the top of the piston also looks fine, put it back together with a new gasket, then comp test it again, if it's still off, get a leakdown test done to check the condition of the rings or put a couple drops of oil into each pot. If the oil raises the comp its usually rings/piston, if it doesn't, it's usually valves.

Cheers Dave.

Yep, its useualy ring's but can allso be valve guides and I guess gasket if its only ruptured between the cylinder and an oil galery.

Sorry thread jack.

So that excess oiley smoke from the breather is the gases that have leaked from the piston into the case and back up throught the pushrod galleys?

Blow Buy, Pull the breather hose of the rocker cover and see if there is visable steem like stuff blown out the pipe.

Test your valves this way:

1. With head off the engine, set it upside down. Combustion chambers facing up.

2. Fill each chamber with water, enough to completely cover the valve heads.

3. Let sit overnight, or a couple of hours.

If any water leaks out (down into the ports), the valves need relapping or re-grinding.

Still get a good look at piston number two. I'd say your rings are on the way out.

Pop a new gasket on too when you do get to it.

Wait for a second opinion but in my experience (which is limited) blow-by is the term given to the compression lost via piston failure or piston ring degradation. I think the valve sleeves (if the valve stems are worn excessively) could also be a port of compression loss too.

With regard to the back-firing, this could simply be the timing? Perhaps get everything timed nicely and then adjust your tappets to the specified gaps. This may help.