Originally posted by jgalt_54-235:
Go ahead and adjust the valves, this could well be your problem. You might want to re-torque the head bolts as well before adjusting.
The number 3 is the big problem, perhaps the rocker is too tight and never closes completely.
I agree. Nothing you have done should have hurt the piston or rings for #3, so adjusting your valves will almost certainly resolve the situation. And I would personally also re-torque the head bolts. That shouldn't hurt, and it might help.
Btw, did you replace the head bolts? I've done that, in the past, on some old engines (not Chevy). I don't know if it's recommended to replace them on the 235 but, after all, they're over 40 years old if they are the original bolts. Just a thought....