An update:
I tore off the intake/exhaust manifold and found that a mudwasp had made a nest in the central intake port!
Off comes the head.... and I discovered that the Intake valves on the #1 and#6 cylinder have made contact with the pistons. Not fractured piston contact, though there is a slight indent. Weird that these two would have the only marks.
Took off the pan and dropped all the pistons out +.40. Wow these are sort of stone age tech.
The crank journals have some marks that I can feel. guess the motor is getting a complete going through after all.
I saw a tip on making the 261 a full pressure oiler... now I can't find it! Does anyone make aluminum gears for these now?
Jeremy