**UPDATE**
I just finished inspecting the valve seals. ALL the red umbrella seals have failed and they were only on the exhaust valves. Looks like they were installed with the upper edge deliberately tucked inside the lower groove of the valve stem and inside the valve cap. Don't ask me how they accomplished that. Doesn't make sense to me.

I have removed the failed exhaust valve umbrella seals and installed the O-ring style.

The intake valves all have positive seals and they look fine but the builder also used the original O-ring seals inside the cap. Jerry warned me that using both seals would be a problem so I have removed the O-rings on the intake valves and now they just have positive seals.

All the valve guides were machined.
The engine runs fine and has 40 psi oil pressure. Now I must adjust the valve lash after all that work.


Photobucket album of my valve seals. The photos of the bare head are there to show what the valve guides look like if they are NOT machined.