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Mongo - I thought you were a Brookfield resident!
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NM51 - Cylinder diameter is large compared to the valve diameter. If the valves require sinking it will steal some compression but you still have a net gain.
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Many many board members have installed 261s and milled their heads. If you are one of those guys please share specific information on compression after milling, how much was milled, and what grade of fuel you are successfully using now.
I'll bet everyone has heard that the 848 head is the best for 261s (and 235) because it provides more compression. Surely someone can state what the actual compression gain is when this is done?