I can't tell from your photos, but it seems like you've got a couple of bent intake valves. That's not uncommon for a stovebolt engine that sits for some time without being turned over regularly. The valves that are open when the engine stops stick in their guides, and the pistons hit them when the engine is spun over with the starter to do a compression test. ALWAYS turn a stored engine by hand after checking all the valves for free movement before using the starter the first time. A valve job and a new head gasket will probably get you back in business.
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
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